GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Toll Brothers Inc (LTS:0LFS) » Definitions » Quick Ratio

Toll Brothers (LTS:0LFS) Quick Ratio : 0.55 (As of Jul. 2024)


View and export this data going back to 2018. Start your Free Trial

What is Toll Brothers Quick Ratio?

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 Jul. 2024 was 0.55.

Toll Brothers has a quick ratio of 0.55. 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:

LTS:0LFS' s Quick Ratio Range Over the Past 10 Years
Min: 0.33   Med: 0.72   Max: 1.19
Current: 0.77

During the past 13 years, Toll Brothers's highest Quick Ratio was 1.19. The lowest was 0.33. And the median was 0.72.

LTS:0LFS's Quick Ratio is ranked worse than
56.25% of 96 companies
in the Homebuilding & Construction industry
Industry Median: 0.83 vs LTS:0LFS: 0.77

Toll Brothers Quick Ratio Historical Data

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.

* Premium members only.

Toll Brothers Quick Ratio Chart

Toll Brothers Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.05 0.93 0.73 0.68 0.77

Toll Brothers Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.68 0.59 0.65 0.55 0.77

Competitive Comparison of Toll Brothers's Quick Ratio

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's Quick Ratio Distribution in the 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.



Toll Brothers Quick Ratio Calculation

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. 2023 is calculated as

Quick Ratio (A: Oct. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(10776.746-9057.578)/2516.799
=0.68

Toll Brothers's Quick Ratio for the quarter that ended in Jul. 2024 is calculated as

Quick Ratio (Q: Jul. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(11916.885-10198.06)/3106.588
=0.55

* 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  (LTS:0LFS) 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

Thank you for viewing the detailed overview of Toll Brothers's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Toll Brothers Business Description

Traded in Other Exchanges
Address
1140 Virginia Drive, Fort Washington, PA, USA, 19034
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-home buyers. Traditional homebuilding operations represent most of 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.

Toll Brothers Headlines

No Headlines