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Toll Brothers Quick Ratio

: 0.41 (As of Apr. 2022)
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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. 2022 was 0.41.

Toll Brothers has a quick ratio of 0.41. 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:

TOL' s Quick Ratio Range Over the Past 10 Years
Min: 0.15   Med: 0.78   Max: 3.26
Current: 0.41

During the past 13 years, Toll Brothers's highest Quick Ratio was 3.26. The lowest was 0.15. And the median was 0.78.

TOL's Quick Ratio is ranked worse than
82.57% of 109 companies
in the Homebuilding & Construction industry
Industry Median: 0.92 vs TOL: 0.41

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 Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.85 1.11 1.21 1.07 0.95

Toll Brothers Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Quick Ratio 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 Premium Member Only Premium Member Only Premium Member Only 0.61 0.67 0.95 0.47 0.41

Competitive Comparison

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 Distribution

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. 2021 is calculated as

Quick Ratio (A: Oct. 2021 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(10051.004-7915.884)/2249.313
=0.95

Toll Brothers's Quick Ratio for the quarter that ended in Apr. 2022 is calculated as

Quick Ratio (Q: Apr. 2022 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(9994.477-8978.816)/2455.829
=0.41

* 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  (NYSE:TOL) 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

Toll Brothers logo
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 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 U.S. It has its headquarters in Horsham, Pennsylvania.
Executives
Kan Derek T. director TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Stowell Scott D director
East Stephen F. director TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Parahus Robert officer: EVP,Co-Chief Operating Officer TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Boyd James W. officer: EVP,Co-Chief Operating Officer TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Mcdonald John K. officer: SVP, General Counsel TOLL BROTHERS, INC. 250 GIBRALTAR ROAD HORSHAM PA 19044
Grimes Karen H. director TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Pritchett Wendell E. director TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Grubb Michael J. officer: Chief Accounting Officer TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Mclean John A director TOLL BROTHERS, INC. 1140 GIBRALTAR ROAD FORT WASHINGTON PA 19034
Hartman Richard T. officer: Chief Operating Officer 250 GIBRALTAR ROAD HORSHAM PA 19044
Connor Martin P. officer: Chief Financial Officer 250 GIBRALTAR ROAD HORSHAM PA 19044
Yearley Douglas C. Jr. officer: Executive Vice President 250 GIBRALTAR ROAD HORSHAM PA 19044
Garvey Christine director 14100 E 35TH PLACE AURORA CO 80011
Boehne Edward G director 313 DEVON STATE ST DEVON PA 19333

Toll Brothers Headlines

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