Toll Brothers Inc (TOL)

Inventory turnover

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Cost of revenue	US$ in thousands	7,824,260	7,360,740	7,789,180	6,847,460	5,659,960
Inventory	US$ in thousands	9,712,920	9,057,580	8,733,330	7,915,880	7,658,910
Inventory turnover		0.81	0.81	0.89	0.87	0.74

October 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $7,824,260K ÷ $9,712,920K
= 0.81

Toll Brothers Inc's inventory turnover over the past five years has shown fluctuations. The trend indicates that the company is taking longer to sell its inventory relative to the amount of inventory it holds. A lower inventory turnover ratio suggests inefficiency in managing and selling inventory, potentially leading to higher carrying costs and reduced liquidity. It is essential for Toll Brothers Inc to focus on improving inventory management practices to enhance operational efficiency and profitability.

Peer comparison

Oct 31, 2024

Company name

Symbol

Inventory turnover

Toll Brothers Inc

TOL

0.81