Toll BrothersFRA:TLK +0.32%93 Current Ratio is 4.07 as of Apr. 2026, which is 11% below its 10-year median of 4.58. GuruFocus rates FRA:TLK with a GF Score™ of 93/100 and a GF Value™ of €117.88 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 95 Homebuilding & Construction companies, Toll Brothers ranks better than 77.89% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Toll Brothers's current ratio for the quarter that ended in Apr. 2026 was 4.07.
Toll Brothers has a current ratio of 4.07. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Toll Brothers's Current Ratio or its related term are showing as below:
FRA:TLK'
s Current Ratio Range Over the Past 10 Years
Min: 3.92 Med: 4.58 Max: 7.02
Current: 4.07
During the past 13 years, Toll Brothers's highest Current Ratio was 7.02. The lowest was 3.92. And the median was 4.58.
FRA:TLK's Current Ratio is ranked better than 77.89% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 2.46
vs FRA:TLK: 4.07
Toll Brothers (FRA:TLK) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Toll Brothers Current Ratio Related Terms
Toll Brothers Current Ratio Historical Data
* Premium members only.
The historical data trend for Toll Brothers's Current 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.
FRA:TLK vs NVR, IBP, TMHC: Current Ratio Comparison
For the Residential Construction subindustry, Toll Brothers's Current Ratio, along with its competitors' market caps and Current 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.
Toll Brothers Current Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's Current Ratio distribution charts can be found below:
* The bar in red indicates where Toll Brothers's Current Ratio falls into.
* 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.
Toll Brothers (FRA:TLK) has a Current Ratio of 4.07 as of Apr. 2026. This is 11% below median its historical median of 4.58. Over the past decade, Toll Brothers' Current Ratio has ranged from 3.92 to 7.02. According to the industry distribution chart, Toll Brothers ranks #21 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 22.1%.
Is Toll Brothers' Current Ratio too high?
Toll Brothers' current Current Ratio of 4.07 is 11% below median its 10-year median of 4.58. Over the past 10 years, this metric has ranged from a low of 3.92 to a high of 7.02. The Homebuilding & Construction industry median Current Ratio is 2.46. Toll Brothers' value of 4.07 is 65.4% above this industry median. Based on the distribution chart, Toll Brothers ranks #21 out of 95 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Toll Brothers has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toll Brothers' Current Ratio compare to NVR and IBP?
According to the Homebuilding & Construction industry distribution chart, Toll Brothers ranks #21 out of 95 companies for Current Ratio. This places Toll Brothers in the top 22% of its industry — outperforming the majority of peers. The industry median Current Ratio is 2.46. Toll Brothers' value of 4.07 is 65.4% above this benchmark. Historically, Toll Brothers' own Current Ratio has ranged from 3.92 to 7.02 over the past decade. While the company's 10-year median is 4.58 vs. the industry median of 2.46, Toll Brothers has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Homebuilding & Construction company?
The median Current Ratio among Homebuilding & Construction companies is 2.46, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Toll Brothers's current Current Ratio of 4.07 is 65.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Homebuilding & Construction industry, the median Current Ratio is 2.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toll Brothers's current Current Ratio is 4.07, which is 11% below median its own 10-year median of 4.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toll Brothers stock overvalued right now?
Based on GuruFocus' analysis, Toll Brothers (FRA:TLK) is currently considered Modestly Overvalued. The stock's GF Value™ is €117.88, compared to a current price of €141.40 — trading 20% above its estimated fair value. The current Current Ratio is 4.07, which is 11% below median its 10-year median of 4.58 and 65.4% above the Homebuilding & Construction industry median of 2.46. Toll Brothers' overall GF Score™ is 93/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Toll Brothers (FRA:TLK), the current Current Ratio is 4.07 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Toll Brothers (FRA:TLK) Overvalued in 2026?
Based on GuruFocus' analysis, Toll Brothers stock appears to be overvalued.
The current stock price of €141.40 is trading 20% above its estimated GF Value™ of €117.88.
GuruFocus considers Toll Brothers to be Modestly Overvalued.
Key valuation signals for FRA:TLK:
Current Ratio: 4.07 (11% below median its 10-year median of 4.58)
GF Value™: €117.88 vs. price of €141.40 (20% above fair value)
Industry Position: 65.4% above the Homebuilding & Construction median (#21 of 95)
No single metric tells the full story. See the FRA:TLK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in over 60 markets across 24 states and caters to move-up, active-adult, and second-homebuyers. Toll Brothers consistently ranks as a top 10 builder within the US according to total home closings. Traditional homebuilding operations represent most of the company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the US It has its headquarters in Horsham, Pennsylvania.
93GF Score
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