Tractor Supply Company (TSCO)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | 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 |
| 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($251,491K
+ $—K
+ $—K)
÷ $2,319,190K
= 0.11
The quick ratio of Tractor Supply Company has fluctuated over the past few years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
From March 31, 2020, to March 31, 2022, the quick ratio decreased steadily from 0.31 to 0.18, indicating a potential decrease in the company's ability to cover its short-term liabilities.
However, in the following two quarters, the quick ratio slightly improved to 0.24 and 0.10, before dropping to 0.09 by December 31, 2022. This pattern suggests continued pressure on the company's liquidity position.
From March 31, 2023, to December 31, 2024, the quick ratio remained low, ranging between 0.08 and 0.18. These figures indicate that Tractor Supply Company may face challenges in using its quick assets to meet its short-term obligations efficiently.
In conclusion, the trend of Tractor Supply Company's quick ratio highlights fluctuations and potential liquidity concerns over the analyzed period. Management should closely monitor the company's liquidity position and take appropriate actions to strengthen its ability to cover short-term liabilities.
Peer comparison
Dec 31, 2024