Toro Co (TTC)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 199,500 | 221,100 | 188,800 | 198,500 | 193,100 | 147,926 | 151,304 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 1,328,280 | — | — | — | — | — | — | — | 19,272 | 25,295 | 22,955 | 19,745 | — | — | — |
| Receivables | US$ in thousands | 459,700 | 532,300 | 623,100 | 489,100 | 407,400 | 390,700 | 462,000 | 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 |
| 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 |
| Quick ratio | 0.68 | 0.77 | 0.77 | 0.75 | 0.63 | 2.06 | 0.60 | 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 |
October 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($199,500K
+ $—K
+ $459,700K)
÷ $976,000K
= 0.68
The quick ratio of Toro Co, which measures the company's ability to meet its short-term obligations using its most liquid assets, has exhibited some fluctuations over the past several reporting periods.
Over the most recent reporting period ending on October 31, 2024, the quick ratio stood at 0.68. This ratio indicates that Toro Co had $0.68 in liquid assets available to cover each $1 of its current liabilities. Comparing this to the previous periods, the quick ratio has shown relative stability, with values ranging from 0.56 to 0.77.
It is worth noting that the quick ratio spiked notably to 2.06 on August 4, 2023, which may indicate a temporary increase in the company's liquidity position or possibly a reduction in current liabilities in that specific period.
Overall, a quick ratio below 1 suggests that Toro Co may have limited ability to cover its short-term obligations with its liquid assets alone. It would be advisable for the company to monitor its liquidity position closely and potentially take steps to strengthen it if necessary.