Toro Co (TTC)
Cash ratio
| Oct 31, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Oct 31, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 31, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 31, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 31, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 199,500 | 221,100 | 188,800 | 198,500 | 193,100 | 147,926 | 151,304 | 174,037 | 188,250 | 231,564 | 263,233 | 192,959 | 405,612 | 535,330 | 497,635 | 433,394 | 479,892 | 394,141 | 200,004 | 108,914 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 1,328,280 | — | — | — | — | — | — | — | 19,272 | 25,295 | 22,955 | 19,745 | — | — | — |
| Total current liabilities | US$ in thousands | 976,000 | 984,400 | 1,048,700 | 921,900 | 948,600 | 907,500 | 1,024,000 | 988,000 | 1,063,600 | 1,011,260 | 1,110,730 | 986,064 | 937,019 | 958,440 | 988,904 | 819,541 | 855,797 | 797,112 | 855,733 | 824,307 |
| Cash ratio | 0.20 | 0.22 | 0.18 | 0.22 | 0.20 | 1.63 | 0.15 | 0.18 | 0.18 | 0.23 | 0.24 | 0.20 | 0.43 | 0.58 | 0.53 | 0.56 | 0.58 | 0.49 | 0.23 | 0.13 |
October 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($199,500K
+ $—K)
÷ $976,000K
= 0.20
The cash ratio of Toro Co over the past several quarters has varied, indicating fluctuations in the company's ability to cover its short-term liabilities with cash and cash equivalents. Generally, a higher cash ratio is considered favorable as it suggests a stronger financial position and liquidity.
Looking at the data, we observe that the cash ratio ranged between 0.13 and 1.63 during the period from January 2020 to October 2024. The highest cash ratio of 1.63 was reported in August 4, 2023, indicating a strong ability to cover short-term liabilities with cash on hand at that point. On the other hand, the lowest cash ratio of 0.13 was recorded on May 1, 2020, which might have raised concerns about the company's liquidity position at that time.
In recent quarters, the cash ratio seems to have stabilized around the range of 0.18 to 0.23, with the latest reported cash ratio as of October 31, 2024, standing at 0.20. This suggests that Toro Co has maintained a consistent level of liquidity relative to its short-term obligations. It is essential for the company to monitor its cash position closely to ensure it can meet its financial obligations promptly and efficiently.