Tractor Supply Company (TSCO)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,309,920 | 3,483,160 | 3,639,620 | 3,519,480 | 3,263,940 | 3,534,110 | 3,577,270 | 3,458,920 | 3,157,780 | 3,109,800 | 3,230,400 | 3,168,280 | 3,250,440 | 3,467,860 | 3,567,140 | 3,380,830 | 3,258,680 | 3,170,960 | 3,030,110 | 2,480,240 |
| 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 |
| Current ratio | 1.43 | 1.48 | 1.43 | 1.40 | 1.50 | 1.52 | 1.60 | 1.47 | 1.33 | 1.48 | 1.44 | 1.44 | 1.57 | 1.69 | 1.71 | 1.71 | 1.87 | 1.49 | 1.40 | 1.66 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,309,920K ÷ $2,319,190K
= 1.43
The current ratio of Tractor Supply Company has experienced fluctuations over the periods provided. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign.
Looking at the data, Tractor Supply Company's current ratio ranged from 1.33 to 1.87 over the period. Despite some fluctuations, the company generally maintained a current ratio above 1, indicating a healthy liquidity position. It peaked at 1.87 on December 31, 2020, which may suggest a strong ability to cover short-term obligations during that period.
However, the ratio dipped to its lowest point of 1.33 on December 31, 2022, which could indicate a possible strain on liquidity during that period. Investors and analysts typically prefer a consistent and stable current ratio, so the fluctuations observed in Tractor Supply Company's ratio may warrant further investigation to understand the underlying factors contributing to the changes.
Overall, while the company's current ratio fluctuated over the period, it generally remained above the 1 threshold, indicating a reasonable ability to meet short-term obligations with current assets. It is important to assess the company's working capital management and overall financial health in conjunction with the current ratio to gain a comprehensive understanding of its liquidity position.
Peer comparison
Dec 31, 2024