Toro Co (TTC)
Current ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,798,800 | 1,675,400 | 1,489,180 | 1,427,650 | 1,122,890 |
| Total current liabilities | US$ in thousands | 948,600 | 1,063,600 | 937,019 | 855,797 | 756,970 |
| Current ratio | 1.90 | 1.58 | 1.59 | 1.67 | 1.48 |
October 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,798,800K ÷ $948,600K
= 1.90
The current ratio of Toro Co. has exhibited fluctuations over the past five years. In 2023, the current ratio improved to 1.90 from 1.58 in 2022, indicating a stronger short-term liquidity position. This suggests that the company had $1.90 in current assets for every $1 of current liabilities, reflecting improved ability to meet short-term obligations. However, it's important to note that the current ratio was relatively lower in 2019 at 1.48, which may indicate a higher risk of liquidity constraints. Overall, the upward trend in the current ratio from 2019 to 2023 suggests an improvement in Toro Co.'s short-term liquidity position.