Tractor Supply Company (TSCO)

Liquidity ratios

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
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
Quick 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
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

Tractor Supply Company's liquidity ratios show varying trends over the past few years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has fluctuated within a relatively stable range of 1.33 to 1.87. A current ratio above 1 indicates that the company can meet its current liabilities.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, reveals a more volatile trend, ranging from 0.08 to 0.77. This suggests that the company may face challenges in meeting its short-term obligations without relying on inventory.

The cash ratio, which is the most conservative liquidity ratio as it only includes cash and cash equivalents, mirrors the quick ratio's trend closely, indicating that Tractor Supply Company's ability to cover its short-term liabilities with its cash reserves has been fluctuating.

Overall, while the current ratio indicates that Tractor Supply Company has generally been able to meet its short-term obligations, the volatile trends in the quick ratio and cash ratio suggest potential challenges in maintaining liquidity levels in certain periods. It is important for the company to closely monitor and manage its liquidity position to ensure ongoing financial stability.

Additional liquidity measure

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 conversion cycle days 105.63 115.56 113.98 117.43 103.54 107.72 101.70 116.72 106.16 110.18 104.27 111.42 96.90 101.15 94.91 103.25 94.90 108.77 101.75 124.87

The cash conversion cycle of Tractor Supply Company has shown some fluctuation over the past few years based on the provided data. The company's cash conversion cycle is a measure of how efficiently it manages its working capital.

From the data, we can see that the cash conversion cycle ranged from a high of 124.87 days on March 31, 2020, to a low of 94.90 days on December 31, 2020. This indicates that Tractor Supply Company was able to convert its investments in inventory into cash more efficiently towards the end of 2020.

While there were fluctuations in the cash conversion cycle over the quarters, it generally stayed within a range of around 100 to 120 days. This suggests that the company has been reasonably effective in managing its inventory and accounts receivable relative to its accounts payable.

Overall, monitoring the cash conversion cycle is crucial for understanding how efficiently a company is managing its working capital and liquidity. Tractor Supply Company's management should continue to focus on optimizing this metric to ensure a healthy balance between cash flow and operational efficiency.