Tractor Supply Company (TSCO)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 84,241 | 82,640 | 104,018 | 102,215 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 1,247,600 | 1,251,720 | 1,271,390 | 1,311,930 |
| Quick ratio | 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 | 0.07 | 0.07 | 0.08 | 0.08 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($397,071K
+ $—K
+ $—K)
÷ $2,177,080K
= 0.18
The quick ratio of Tractor Supply Company has exhibited fluctuations over the past 5 years. The quick ratio provides insight into the company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.
Looking at the trend, the quick ratio has shown a downward trend in the recent quarters. The quick ratio was notably low in March 2020 at 0.07, indicating a challenging liquidity position at that time. However, there was a gradual improvement in the quick ratio during 2020 and 2021, reaching the highest point of 0.77 in December 2020, suggesting a strong ability to cover short-term obligations with liquid assets.
In 2022 and 2023, the quick ratio decreased significantly, indicating potential liquidity issues. The quick ratio dropped from 0.68 in June 2021 to 0.18 in December 2023, raising concerns about the company's short-term liquidity position.
Overall, Tractor Supply Company's quick ratio has been volatile, and the recent downward trend suggests a need for careful monitoring of liquidity management to ensure the company can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023