Toll Brothers Inc (TOL)

Fixed asset turnover

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Revenue (ttm)	US$ in thousands	10,846,740	10,533,430	10,493,130	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
Property, plant and equipment	US$ in thousands	453,007	459,234	321,166	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
Fixed asset turnover		23.94	22.94	32.67	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

October 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $10,846,740K ÷ $453,007K
= 23.94

The fixed asset turnover for Toll Brothers Inc has shown a generally increasing trend over the past few years, indicating improvements in the efficiency of utilizing fixed assets to generate revenue. The ratio has fluctuated between 22.16 and 36.30, with the highest value recorded in July 2023 and the lowest in Jan 2020.

The company's ability to generate sales relative to its investment in fixed assets has been relatively strong, with ratios consistently above 20, suggesting effective management and utilization of its asset base. The peak ratio of 36.30 in July 2023 indicates that Toll Brothers Inc generated $36.30 in sales for every dollar invested in fixed assets during that period.

Overall, the increasing trend in fixed asset turnover suggests that Toll Brothers Inc has been able to enhance operational efficiency and optimize the use of its fixed assets to drive revenue growth across the analyzed period. Further analysis of the underlying drivers of this trend could provide deeper insights into the company's operational performance and strategic initiatives.