Toro Co (TTC)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 198,500 | 193,100 | 147,926 | 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 | 151,828 | 143,317 | 180,078 | 249,965 |
| Short-term investments | US$ in thousands | — | — | 1,328,280 | — | — | — | — | — | — | 19,272 | 25,295 | 22,955 | 19,745 | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 489,100 | 407,400 | 390,677 | 377,300 | 332,700 | 350,657 | 439,333 | 366,270 | 310,279 | 301,234 | 391,236 | 306,865 | 261,135 | 294,672 | 400,444 | 321,192 | 268,768 | 312,239 | 428,567 | 225,528 |
| 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 |
| Quick ratio | 0.75 | 0.63 | 2.06 | 0.56 | 0.49 | 0.58 | 0.63 | 0.57 | 0.76 | 0.89 | 0.92 | 0.93 | 0.89 | 0.86 | 0.70 | 0.52 | 0.56 | 0.60 | 0.72 | 0.84 |
February 2, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($198,500K
+ $—K
+ $489,100K)
÷ $921,900K
= 0.75
The quick ratio of Toro Co., a measure of its ability to meet short-term financial obligations using its most liquid assets, has fluctuated over the past several quarters. In Q1 2024, the quick ratio improved to 0.86 compared to the previous quarter, indicating that the company had $0.86 in liquid assets available to cover each dollar of its current liabilities. This suggests an increase in short-term liquidity and potential ability to meet immediate payment obligations more comfortably.
Looking back at Q4 2023, the quick ratio was 0.75, showing a slight decline from the previous quarter. Despite this dip, the ratio remained above 1, indicating that the company still had more current assets than current liabilities for the period. In Q3 and Q2 of 2023, the quick ratio remained relatively stable at 0.68, suggesting consistent liquidity levels during those quarters.
Further back, in Q1 and Q4 of 2023, the quick ratio was 0.63 and 0.59 respectively, indicating a slight decrease in liquidity during that timeframe. In Q3 and Q2 of 2022, the quick ratio showed some improvement, reaching 0.66 and 0.70 respectively.
Overall, Toro Co.'s quick ratio has shown some fluctuations in the recent quarters, with some periods demonstrating better liquidity position than others. It is important for the company to maintain a healthy quick ratio to ensure it can easily meet its short-term financial obligations without facing liquidity concerns.