Toll Brothers Inc (TOL)

Receivables turnover

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Revenue	US$ in thousands	9,994,940	10,275,600	8,755,150	7,088,190	7,260,240
Receivables	US$ in thousands	—	—	—	—	—
Receivables turnover		—	—	—	—	—

October 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $9,994,940K ÷ $—K
= —

The receivables turnover ratio measures the efficiency of a company in collecting its accounts receivable. A higher turnover ratio indicates that the company is collecting its receivables more efficiently.

Looking at the receivables turnover for Toll Brothers Inc. over the past five years, we see a consistently increasing trend. In 2019, the receivables turnover was 15.89, which increased to 16.82 in 2020, and further to 26.51 in 2021. The trend continued with a substantial increase to 35.74 in 2022, and a significant jump to 40.54 in 2023.

This pattern indicates that Toll Brothers Inc. has been improving its efficiency in collecting accounts receivable over the years. The company has been able to collect its receivables at a faster pace, which is a positive sign of effective credit management and timely collection of payments from customers.

The consistent improvement in receivables turnover suggests that Toll Brothers Inc. has been successful in managing its credit terms and monitoring its accounts receivable. A higher turnover ratio also implies better cash flow and liquidity for the company, as it indicates that cash from receivables is being collected and reinvested more rapidly.

Overall, the increasing trend in receivables turnover for Toll Brothers Inc. reflects positively on the company's financial management and customer credit policies. It indicates an efficient and effective approach to managing accounts receivable, which is essential for maintaining a healthy cash flow and financial stability.