The Toro Co has a Cash Ratio of 0.22. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for The Toro Co's Cash Ratio or its related term are showing as below:
TTC'
s Cash Ratio Range Over the Past 10 Years
Min: 0.13 Med: 0.29 Max: 0.79
Current: 0.22
During the past 13 years, The Toro Co's highest Cash Ratio was 0.79. The lowest was 0.13. And the median was 0.29.
TTC's Cash Ratio is ranked worse than 75.7% of 2980
companies
in the Industrial Products industry
Industry Median: 0.53
vs TTC: 0.22
The Toro Co Cash Ratio Historical Data
The historical data trend for The Toro Co's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of The Toro Co's Cash Ratio
For the Tools & Accessories subindustry, The Toro Co's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Toro Co's Cash Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Toro Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where The Toro Co's Cash Ratio falls into.
The Toro Co Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
The Toro Co's Cash Ratio for the fiscal year that ended in Oct. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Toro Co (NYSE:TTC) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
The Toro Co Cash Ratio Related Terms
Thank you for viewing the detailed overview of The Toro Co's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
The Toro Co manufactures turf maintenance and landscaping equipment. The company produces reel and rotary riding products, trim cutting and walking mowers, greens rollers, turf sprayer equipment, underground irrigation systems, heavy-duty walk-behind mowers, and sprinkler systems used for professional turf and landscape maintenance and construction. Its products are marketed through a network of distributors and dealers to predominantly professional users maintaining turfs and sports fields such as golf courses. Its operating segments are Professional which generates a substantial part of its revenue, and Residential segment. The company also produces snow plowers and ice management products. Its key revenue generating market is the United States.
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