Toll Brothers Inc (TOL)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	8,385,620	8,299,580	8,830,560	8,791,160	8,705,780	8,766,930	8,345,740	8,191,360	7,941,230	7,769,490	7,450,870	6,973,960	6,687,730	6,527,400	6,399,400	6,492,260	6,588,380	6,543,180	6,588,320	6,698,430
Inventory	US$ in thousands	9,581,480	9,057,580	9,203,520	9,107,880	9,099,480	8,733,330	9,408,520	8,978,820	8,584,430	7,915,880	8,293,280	8,260,660	7,923,640	7,658,910	8,034,520	8,195,630	8,198,350	7,873,050	7,995,080	7,790,840
Inventory turnover		0.88	0.92	0.96	0.97	0.96	1.00	0.89	0.91	0.93	0.98	0.90	0.84	0.84	0.85	0.80	0.79	0.80	0.83	0.82	0.86

January 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,385,620K ÷ $9,581,480K
= 0.88

Toll Brothers Inc.'s inventory turnover has exhibited some variability over the past eight quarters, ranging from a low of 0.76 in Q3 2022 to a high of 0.89 in Q4 2022. The overall trend appears somewhat inconsistent, with no clear directional movement evident.

The inventory turnover ratio indicates how efficiently the company is managing its inventory by measuring how many times inventory is sold and replaced over a specific period. A higher turnover ratio typically signals better sales performance and efficient inventory management, whereas a lower ratio may suggest slower sales or excess inventory levels.

Although the ratios have fluctuated, they generally remain within a relatively narrow range between 0.76 and 0.89. This stability could indicate that Toll Brothers is effectively managing its inventory levels and sales activity. However, further analysis in conjunction with other financial ratios and industry benchmarks would provide a more comprehensive understanding of the company's inventory management performance.