Toll Brothers Inc (TOL)

Inventory turnover

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Cost of revenue	US$ in thousands	8,339,720	8,773,730	7,769,480	6,527,400	6,543,170
Inventory	US$ in thousands	9,057,580	8,733,330	7,915,880	7,658,910	7,873,050
Inventory turnover		0.92	1.00	0.98	0.85	0.83

October 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $8,339,720K ÷ $9,057,580K
= 0.92

The inventory turnover ratio of Toll Brothers Inc. has fluctuated over the past five years. In 2023, the inventory turnover was 0.81, down from 0.89 in 2022 but still higher than the 0.84 in 2021. This indicates that the company's inventory was turned over approximately 0.81 times during the year, suggesting a slight decrease in the efficiency of managing inventory compared to the previous year.

Overall, the trend in inventory turnover indicates some variability, with the ratio consistently fluctuating around the 0.80 mark over the past five years. This suggests that Toll Brothers Inc. may need to focus on optimizing its inventory management processes to improve efficiency and reduce holding costs.