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. Thor Industries's quick ratio for the quarter that ended in Jan. 2024 was 0.65.
Thor Industries has a quick ratio of 0.65. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Thor Industries's Quick Ratio or its related term are showing as below:
THO'
s Quick Ratio Range Over the Past 10 Years
Min: 0.64 Med: 0.91 Max: 1.81
Current: 0.65
During the past 13 years, Thor Industries's highest Quick Ratio was 1.81. The lowest was 0.64. And the median was 0.91.
THO's Quick Ratio is ranked worse than 77.23% of 1309
companies
in the Vehicles & Parts industry
Industry Median: 1.05
vs THO: 0.65
Thor Industries Quick Ratio Historical Data
The historical data trend for Thor Industries'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.
Thor Industries Annual Data
Trend
Jul14
Jul15
Jul16
Jul17
Jul18
Jul19
Jul20
Jul21
Jul22
Jul23
Quick Ratio
0.84
0.91
0.80
0.74
0.66
Thor Industries Quarterly Data
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
Oct23
Jan24
Quick Ratio
0.68
0.71
0.66
0.64
0.65
Competitive Comparison
For the Recreational Vehicles subindustry, Thor Industries'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.
Thor Industries Quick Ratio Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, Thor Industries's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Thor Industries's Quick Ratio falls into.
Thor Industries 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.
Thor Industries's Quick Ratio for the fiscal year that ended in Jul. 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.
Thor Industries (NYSE:THO) 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.
Thor Industries Quick Ratio Related Terms
Thank you for viewing the detailed overview of Thor Industries's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Thor Industries (Thor Industries) Business Description
Based in Elkhart, Indiana, Thor Industries manufactures Class A, Class B, and Class C motor homes along with travel trailers and fifth wheel towables across over 30 brands. Through the acquisition of Erwin Hymer in 2019, the company expanded its geographic footprint and now produces various motorized and towable recreational vehicles for Europe, including motorcaravans, campervans, urban vehicles, caravans, and other RV-related products and services. The company has also begun generating revenue through aftermarket component parts through the acquisition of Airxcel in 2021, however, this is still a nascent part of the business as it accounts for less than 10% of total sales. In fiscal 2023, the company wholesaled 187,015 units and generated over $11.1 billion in revenue.
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