Toro Co (TTC)
Current ratio
| Feb 2, 2024 | Oct 31, 2023 | Aug 4, 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 | Oct 31, 2019 | Aug 2, 2019 | May 3, 2019 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,966,500 | 1,798,800 | 1,731,790 | 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 | 1,122,890 | 1,130,400 | 1,270,270 | 933,932 |
| Total current liabilities | US$ in thousands | 921,900 | 948,600 | 907,498 | 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 | 756,970 | 756,403 | 841,774 | 564,978 |
| Current ratio | 2.13 | 1.90 | 1.91 | 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 | 1.48 | 1.49 | 1.51 | 1.65 |
February 2, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,966,500K ÷ $921,900K
= 2.13
The current ratio of Toro Co. has shown a generally positive trend over the past eight quarters, indicating the company's improving short-term liquidity position. The current ratio increased from 1.50 in Q2 2022 to 2.13 in Q1 2024. This suggests that the company's current assets have been increasing relative to its current liabilities, providing a stronger buffer to meet its short-term obligations.
The current ratio fluctuated within a narrow range between 1.50 and 1.91 from Q2 2022 to Q2 2023, demonstrating relative stability in the company's liquidity position during that period. However, the notable increase to 2.13 in Q1 2024 indicates a significant improvement in liquidity management, possibly due to careful management of working capital or increased cash reserves.
Overall, the upward trend in Toro Co.'s current ratio suggests that the company has been effectively managing its short-term liquidity and is in a better position to meet its current financial obligations.