Toll Brothers Inc (TOL)

Total asset 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
Revenue (ttm)	US$ in thousands	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	7,260,250	7,247,800	7,408,590
Total assets	US$ in thousands	12,522,000	12,527,000	12,353,700	11,989,500	11,984,900	12,288,700	11,743,300	11,544,600	11,283,900	11,537,800	11,264,100	10,975,000	10,864,000	11,065,700	10,537,400	10,810,800	10,587,200	10,828,100	10,452,100	10,276,700
Total asset turnover		0.81	0.80	0.87	0.88	0.86	0.84	0.82	0.81	0.80	0.76	0.74	0.70	0.67	0.64	0.66	0.65	0.68	0.67	0.69	0.72

January 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $10,162,620K ÷ $12,522,000K
= 0.81

The total asset turnover ratio for Toll Brothers Inc. has exhibited a relatively stable trend over the past eight quarters, ranging between 0.80 and 0.88. This ratio indicates how efficiently the company is utilizing its assets to generate revenue. A ratio below 1 suggests that Toll Brothers is generating less revenue per dollar of assets, which could be due to factors such as underutilized assets or ineffective sales strategies.

The gradual increase from 0.80 in Q4 2022 to 0.88 in Q2 2023 suggests an improvement in asset utilization efficiency during this period. However, the subsequent decrease to 0.81 in Q1 2024 indicates a slight decline in the company's ability to generate revenue from its assets.

Overall, Toll Brothers' total asset turnover ratio seems to be relatively stable, but fluctuations in this ratio may warrant further investigation into the company's asset management strategies and operational efficiency.