Toll Brothers Inc (TOL)

Fixed asset turnover

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Revenue (ttm)	US$ in thousands	10,162,620	9,994,940	10,686,920	10,494,080	10,264,640	10,275,550	9,604,800	9,365,480	9,018,060	8,790,360	8,292,210	7,688,220	7,320,140	7,088,190	6,946,910	7,061,110	7,216,310	7,260,250	7,247,800	7,408,590
Property, plant and equipment	US$ in thousands	321,668	323,990	294,418	298,168	293,727	287,827	288,110	310,422	315,098	310,455	304,013	276,224	277,696	316,125	313,513	278,518	285,785	273,412	288,742	289,186
Fixed asset turnover		31.59	30.85	36.30	35.20	34.95	35.70	33.34	30.17	28.62	28.31	27.28	27.83	26.36	22.42	22.16	25.35	25.25	26.55	25.10	25.62

January 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $10,162,620K ÷ $321,668K
= 31.59

Fixed asset turnover measures a company's efficiency in generating revenue from its investments in fixed assets. Higher fixed asset turnover ratios indicate better utilization of assets to generate sales.

For Toll Brothers Inc., the fixed asset turnover has fluctuated over the past eight quarters, ranging from 30.17 to 36.30. The ratio peaked at 36.30 in Q3 2023 and hit a low of 30.17 in Q2 2022. This variability suggests changes in the company's effectiveness in utilizing its fixed assets to generate revenue.

On average, Toll Brothers Inc. has maintained a relatively high fixed asset turnover ratio, with an average of approximately 33.75 over the period analyzed. This indicates that the company efficiently generates sales in relation to its investment in fixed assets.

It is essential for Toll Brothers Inc. to monitor its fixed asset turnover over time to ensure optimal asset utilization and identify any potential inefficiencies in its operations. By maintaining a healthy fixed asset turnover ratio, the company can drive profitability and enhance shareholder value.