TSCO · 10-Q · 2026Q2 · Full report

Working Capital Changes

TRACTOR SUPPLY CO /DE/ · 2026-08-06 · Importance 64 · Surprise 56 · No source text

First-half operating cash flow declined $349.5 million year over year to $653.1 million, primarily because of transferable federal tax-credit purchases and inventory and accounts-payable management.,Inventories and accounts payable reduced operating cash flow by $66.3 million in fiscal 2026 versus a $39.8 million source in fiscal 2025, a $106.1 million adverse change.,Income-tax cash flows reduced operating cash by $177.3 million versus a $160.3 million source in the prior year, a $337.6 million adverse change.,Accrued expenses provided $138.8 million of cash versus a $44.7 million use in fiscal 2025, an improvement of $183.5 million.,A federal tax-credit purchase executed in the second quarter will be paid in the first quarter of fiscal 2027 and contributed to higher accrued expenses.

Key facts

• Income taxes change used cash of $177.3 million in first six months of fiscal 2026 vs provided $160.3 million prior year (variance -$337.6 million), primarily driven by purchase of transferable federal tax credits. source
• Accrued expenses increased cash by $138.8 million in first six months of fiscal 2026 vs a $44.7 million use in prior year (variance $183.5 million), primarily driven by purchase of a federal tax credit executed in Q2 fiscal 2026 to be paid in Q1 fiscal 2027. source
• Inventories and accounts payable change decreased cash by $66.3 million in first six months of fiscal 2026 versus an increase of $39.8 million in prior year (variance -$106.1 million). source
• Prepaid expenses and other current assets change decreased cash by $91.6 million in first six months of fiscal 2026 vs $26.4 million prior year (variance -$65.2 million). source

Impact estimates