Toll BrothersFRA:TLK +0.32%93 Quick Ratio is 0.59 as of Apr. 2026, which is 9% below its 10-year median of 0.65. 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 worse than 68.42% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Toll Brothers's quick ratio for the quarter that ended in Apr. 2026 was 0.59.
Toll Brothers has a quick ratio of 0.59. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Toll Brothers's Quick Ratio or its related term are showing as below:
FRA:TLK'
s Quick Ratio Range Over the Past 10 Years
Min: 0.33 Med: 0.65 Max: 1.17
Current: 0.59
During the past 13 years, Toll Brothers's highest Quick Ratio was 1.17. The lowest was 0.33. And the median was 0.65.
FRA:TLK's Quick Ratio is ranked worse than 68.42% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 0.79
vs FRA:TLK: 0.59
Toll Brothers (FRA:TLK) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Toll Brothers Quick Ratio Related Terms
Toll Brothers Quick Ratio Historical Data
* Premium members only.
The historical data trend for Toll Brothers's Quick 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.
For the Residential Construction subindustry, Toll Brothers's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Toll Brothers's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Toll Brothers's Quick Ratio for the fiscal year that ended in Oct. 2025 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.
Toll Brothers (FRA:TLK) has a Quick Ratio of 0.59 as of Apr. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Toll Brothers and its competitors. This is near median its historical median of 0.65. Over the past decade, Toll Brothers' Quick Ratio has ranged from 0.33 to 1.17. According to the industry distribution chart, Toll Brothers ranks #65 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 68.4%.
Is Toll Brothers' Quick Ratio too high?
Toll Brothers' current Quick Ratio of 0.59 is near median its 10-year median of 0.65. Over the past 10 years, this metric has ranged from a low of 0.33 to a high of 1.17. The Homebuilding & Construction industry median Quick Ratio is 0.79. Toll Brothers' value of 0.59 is 25.3% below this industry median. Based on the distribution chart, Toll Brothers ranks #65 out of 95 companies in the Homebuilding & Construction industry, which is below the industry midpoint. 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' Quick Ratio compare to NVR and IBP?
According to the Homebuilding & Construction industry distribution chart, Toll Brothers ranks #65 out of 95 companies for Quick Ratio. This places Toll Brothers in the lower half of its industry. The industry median Quick Ratio is 0.79. Toll Brothers' value of 0.59 is 25.3% below this benchmark. Historically, Toll Brothers' own Quick Ratio has ranged from 0.33 to 1.17 over the past decade. While the company's 10-year median is 0.65 vs. the industry median of 0.79, Toll Brothers has consistently been below 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 Quick Ratio for a Homebuilding & Construction company?
The median Quick Ratio among Homebuilding & Construction companies is 0.79, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Toll Brothers's current Quick Ratio of 0.59 is 25.3% below 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Toll Brothers and its competitors. For the Homebuilding & Construction industry, the median Quick Ratio is 0.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toll Brothers's current Quick Ratio is 0.59, which is near median its own 10-year median of 0.65. 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 Quick Ratio is 0.59, which is near median its 10-year median of 0.65 and 25.3% below the Homebuilding & Construction industry median of 0.79. 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 Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Toll Brothers (FRA:TLK), the current Quick Ratio is 0.59 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:
Quick Ratio: 0.59 (near median its 10-year median of 0.65)
GF Value™: €117.88 vs. price of €141.40 (20% above fair value)
Industry Position: 25.3% below the Homebuilding & Construction median (#65 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
Get the complete analysis for FRA:TLK
Quick Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:TLK has been successfully added to your 
