Tractor Supply Company (TSCO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 251,491 | 397,071 | 202,502 | 878,030 | 1,341,760 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,319,190 | 2,177,080 | 2,376,210 | 2,064,840 | 1,743,800 |
| Cash ratio | 0.11 | 0.18 | 0.09 | 0.43 | 0.77 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($251,491K
+ $—K)
÷ $2,319,190K
= 0.11
The cash ratio of Tractor Supply Company has been fluctuating over the past five years. As of December 31, 2020, the cash ratio was 0.77, indicating that the company had $0.77 in cash and cash equivalents for every dollar of current liabilities. However, by December 31, 2021, the cash ratio decreased to 0.43, suggesting a reduction in the company's ability to cover its short-term obligations with cash.
Subsequently, as of December 31, 2022, the cash ratio further declined to 0.09, signifying a significant decrease in the company's liquidity position. This low cash ratio could indicate potential difficulties in meeting short-term financial obligations without relying on external sources of financing.
However, there was a slight improvement in the cash ratio by December 31, 2023, when it reached 0.18. This increase may imply a better ability to cover short-term liabilities with available cash, although the ratio is still relatively low compared to previous years.
By the end of December 31, 2024, the cash ratio dropped to 0.11, indicating a slight decline in liquidity compared to the previous year. Overall, the trend in Tractor Supply Company's cash ratio suggests fluctuations in its ability to meet short-term obligations with cash on hand, highlighting the importance of monitoring the company's liquidity position closely.
Peer comparison
Dec 31, 2024