Tractor Supply Company (TSCO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 397,071 | 202,502 | 878,030 | 1,341,760 | 84,241 |
| Short-term investments | US$ in thousands | — | — | — | — | 558 |
| Total current liabilities | US$ in thousands | 2,177,080 | 2,376,210 | 2,064,840 | 1,743,800 | 1,247,600 |
| Cash ratio | 0.18 | 0.09 | 0.43 | 0.77 | 0.07 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($397,071K
+ $—K)
÷ $2,177,080K
= 0.18
Tractor Supply Company's cash ratio has exhibited fluctuations over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2023, the cash ratio of Tractor Supply Company stood at 0.18, indicating that the company had $0.18 in cash and cash equivalents for every $1 of current liabilities. This represents an improvement compared to the previous year when the cash ratio was 0.09. The increase in the cash ratio could suggest better liquidity management or an increase in cash reserves relative to its short-term obligations.
Looking back at 2021, the company had a relatively higher cash ratio of 0.43, which signifies a stronger liquidity position compared to the most recent year. In 2020, Tractor Supply Company's cash ratio was notably higher at 0.77, indicating a significant improvement in liquidity and the ability to easily cover short-term liabilities with cash on hand.
However, in 2019, the company had a cash ratio of 0.07, the lowest among the years analyzed, suggesting a relatively weaker liquidity position. It is essential for investors and stakeholders to monitor changes in Tractor Supply Company's cash ratio over time to assess the company's ability to meet its short-term obligations and manage liquidity effectively.
Peer comparison
Dec 31, 2023