Toll Brothers Inc (TOL)

Fixed asset turnover

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Revenue	US$ in thousands	10,846,700	9,994,940	10,275,600	8,755,150	7,088,190
Property, plant and equipment	US$ in thousands	453,007	323,990	287,827	310,455	316,125
Fixed asset turnover		23.94	30.85	35.70	28.20	22.42

October 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,846,700K ÷ $453,007K
= 23.94

Toll Brothers Inc's fixed asset turnover ratio has shown a fluctuating trend over the past five years. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. The higher the ratio, the better the company is at generating sales from its fixed assets.

In 2024, the fixed asset turnover ratio was 23.94, showing a decrease from the previous year's ratio of 30.85. This suggests that Toll Brothers Inc was less efficient in utilizing its fixed assets to generate revenue in 2024 compared to 2023. However, the ratio was still relatively high, indicating a strong ability to generate sales from its fixed assets.

Looking further back, the ratio was highest in 2022 at 35.70, indicating a peak in efficiency in utilizing fixed assets to generate revenue. The ratio then decreased in 2023 but remained relatively high. In 2021 and 2020, the ratios were 28.20 and 22.42, respectively, showing fluctuations but generally staying above 20.

Overall, Toll Brothers Inc has demonstrated a generally strong ability to generate sales from its fixed assets over the past five years, with some fluctuations in efficiency. The company should continue to monitor and improve its fixed asset turnover ratio to ensure optimal utilization of its fixed assets for revenue generation.