Toro Co (TTC)
Current ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,764,900 | 1,798,800 | 1,675,400 | 1,489,180 | 1,427,650 |
| Total current liabilities | US$ in thousands | 976,000 | 948,600 | 1,063,600 | 937,019 | 855,797 |
| Current ratio | 1.81 | 1.90 | 1.58 | 1.59 | 1.67 |
October 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,764,900K ÷ $976,000K
= 1.81
The current ratio of Toro Co has fluctuated over the past five years, ranging from a low of 1.58 in 2022 to a high of 1.90 in 2023. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. With a current ratio above 1 in each year, Toro Co has generally maintained a healthy level of liquidity, indicating that it can meet its short-term obligations without difficulty. The slight decrease in the current ratio in 2024 to 1.81 from 1.90 in the previous year suggests a slightly lower liquidity position, but still remains above 1, signaling a sufficient level of short-term asset coverage. Overall, the current ratio trend reflects Toro Co's ability to effectively manage its short-term financial obligations over the past five years.