Toro Co (TTC)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,764,900 | 1,913,900 | 2,019,200 | 1,966,500 | 1,798,800 | 1,731,800 | 1,826,800 | 1,757,700 | 1,675,400 | 1,604,360 | 1,663,680 | 1,437,260 | 1,489,180 | 1,545,790 | 1,559,490 | 1,456,740 | 1,427,650 | 1,384,250 | 1,374,550 | 1,220,510 |
| 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 |
| Current ratio | 1.81 | 1.94 | 1.93 | 2.13 | 1.90 | 1.91 | 1.78 | 1.78 | 1.58 | 1.59 | 1.50 | 1.46 | 1.59 | 1.61 | 1.58 | 1.78 | 1.67 | 1.74 | 1.61 | 1.48 |
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 exhibited some fluctuation over the past few years, ranging from a low of 1.46 in January 2022 to a high of 2.13 in February 2024. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities to cover its short-term obligations.
The current ratio has mostly remained above 1.5, reflecting Toro Co's ability to meet its short-term financial obligations comfortably. A higher current ratio suggests a stronger liquidity position, as seen in February 2024 with a ratio of 2.13. On the other hand, a lower ratio, as observed in January 2022 at 1.46, may indicate potential liquidity challenges.
Overall, Toro Co's current ratio has shown reasonable stability above the industry standard of 1, indicating that the company has sufficient current assets to cover its current liabilities and is well-positioned to meet its short-term financial commitments. However, management should continue to monitor and manage the current ratio to ensure optimal liquidity levels for sustained financial health.