Tractor Supply Company (TSCO)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,263,940 | 3,157,780 | 3,250,440 | 3,258,680 | 1,787,890 |
| Total current liabilities | US$ in thousands | 2,177,080 | 2,376,210 | 2,064,840 | 1,743,800 | 1,247,600 |
| Current ratio | 1.50 | 1.33 | 1.57 | 1.87 | 1.43 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,263,940K ÷ $2,177,080K
= 1.50
Tractor Supply Company's current ratio has fluctuated over the past five years, indicating varying levels of liquidity and ability to meet its short-term obligations. In 2023, the current ratio stands at 1.50, reflecting an improvement from the previous year's ratio of 1.33. This suggests that the company has slightly more current assets relative to its current liabilities, which is a positive sign for its short-term financial health.
However, compared to 2021 and 2020, where the current ratio was 1.57 and 1.87 respectively, the current ratio has declined, indicating a potential decrease in liquidity and the company's ability to cover its short-term obligations. It's worth noting that in 2019, the current ratio was 1.43, which was lower than the most recent ratio but higher than the 2022 ratio.
Overall, while the current ratio of 1.50 in 2023 shows some improvement from the previous year, it is important for Tractor Supply Company to consistently monitor and manage its current assets and liabilities to ensure sustained liquidity and financial stability in the short term.
Peer comparison
Dec 31, 2023