Toll Brothers Inc (TOL)
Cash conversion cycle
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 399.27 | 396.42 | 363.32 | 371.88 | 428.27 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 399.27 | 396.42 | 363.32 | 371.88 | 428.27 |
October 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 399.27 + — – —
= 399.27
The cash conversion cycle of Toll Brothers Inc has shown variability over the past five years. In the most recent fiscal year ending on October 31, 2024, the company's cash conversion cycle was 399.27 days, indicating that it took the company approximately 399 days to convert its investments in inventory and accounts receivable into cash.
Compared to the previous year, there was a slight increase in the cash conversion cycle from 396.42 days in 2023, suggesting a slight deterioration in the company's efficiency in managing its working capital.
Looking back further, in 2022, the cash conversion cycle was 363.32 days, showing an improvement in efficiency compared to the following years. In 2021 and 2020, the cash conversion cycles were 371.88 days and 428.27 days respectively, indicating fluctuations in the efficiency of converting investments into cash during those periods.
Overall, the trend in Toll Brothers Inc's cash conversion cycle shows some fluctuation over the five-year period, with the company experiencing both improvements and deteriorations in its working capital management efficiency.
Peer comparison
Oct 31, 2024