Tractor Supply Company (TSCO)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 251,491 | 186,294 | 394,748 | 264,085 | 397,071 | 421,693 | 620,031 | 190,078 | 202,502 | 211,241 | 530,822 | 405,432 | 878,030 | 1,111,710 | 1,412,000 | 1,149,930 | 1,341,760 | 1,111,990 | 1,206,370 | 461,473 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,319,190 | 2,345,710 | 2,544,540 | 2,517,760 | 2,177,080 | 2,318,800 | 2,237,460 | 2,349,700 | 2,376,210 | 2,095,200 | 2,242,180 | 2,199,660 | 2,064,840 | 2,046,010 | 2,083,530 | 1,975,920 | 1,743,800 | 2,132,660 | 2,157,050 | 1,494,120 |
| Cash ratio | 0.11 | 0.08 | 0.16 | 0.10 | 0.18 | 0.18 | 0.28 | 0.08 | 0.09 | 0.10 | 0.24 | 0.18 | 0.43 | 0.54 | 0.68 | 0.58 | 0.77 | 0.52 | 0.56 | 0.31 |
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 fluctuated over the reporting periods from March 31, 2020, to December 31, 2024. The cash ratio, which measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents, started at a relatively low level of 0.31 on March 31, 2020, indicating that the company had 31 cents of cash for every dollar of current liabilities.
There was a notable increase in the cash ratio to 0.77 by December 31, 2020, suggesting an improvement in the company's liquidity position. However, the cash ratio dropped to 0.43 by the end of December 31, 2021, and continued to fluctuate around this level in the subsequent periods, ranging between 0.08 and 0.28.
The decreasing trend in the cash ratio from the peak in December 31, 2020, potentially indicates a change in the company's cash management practices or investment in other short-term assets. A low cash ratio may imply that the company may face challenges in meeting its short-term obligations solely from its cash reserves.
It is important for investors and analysts to closely monitor Tractor Supply Company's cash ratio along with other liquidity and financial ratios to assess its overall financial health and ability to manage short-term obligations effectively.
Peer comparison
Dec 31, 2024