Toll Brothers Inc (TOL)
Profitability ratios
Return on sales
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.14% | 16.56% | 14.62% | 11.26% | 7.91% |
| Operating profit margin | 18.81% | 17.26% | 14.68% | 11.66% | 7.76% |
| Pretax margin | 19.23% | 18.43% | 16.58% | 12.57% | 8.28% |
| Net profit margin | 14.49% | 13.73% | 12.52% | 9.52% | 6.30% |
Toll Brothers Inc has demonstrated a positive trend in its profitability ratios over the past five years. The gross profit margin has shown consistent improvement, increasing from 7.91% in 2020 to 18.14% in 2024. This indicates efficient cost management and pricing strategies, resulting in higher profitability on each dollar of sales.
Similarly, the operating profit margin has also shown a steady upward trajectory, reaching 18.81% in 2024 from 7.76% in 2020. This reflects the company's ability to control operating expenses while generating higher revenues from its core business activities.
Moreover, the pretax margin and net profit margin have both exhibited significant improvement over the period under review. The pretax margin increased from 8.28% in 2020 to 19.23% in 2024, indicating enhanced operational efficiency and effective tax planning strategies. The net profit margin rose from 6.30% in 2020 to 14.49% in 2024, reflecting an increase in bottom-line profitability after accounting for all expenses, including taxes.
Overall, Toll Brothers Inc's profitability ratios illustrate a positive trend, showcasing the company's ability to enhance its profitability and generate sustainable returns for its shareholders over the years.
Return on investment
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.26% | 13.77% | 12.28% | 8.85% | 4.97% |
| Return on assets (ROA) | 11.75% | 10.95% | 10.47% | 7.23% | 4.04% |
| Return on total capital | 26.60% | 25.37% | 25.12% | 19.28% | 11.29% |
| Return on equity (ROE) | 20.48% | 20.19% | 21.42% | 15.74% | 9.16% |
Toll Brothers Inc has shown consistent improvement in its profitability ratios over the five-year period from October 31, 2020, to October 31, 2024.
The Operating Return on Assets (Operating ROA) has increased from 4.97% in 2020 to 15.26% in 2024, indicating the company's ability to generate operating profits from its assets has significantly improved.
The Return on Assets (ROA) has also shown a positive trend, increasing from 4.04% in 2020 to 11.75% in 2024. This suggests that Toll Brothers has been more efficient in generating profits relative to its total assets over the years.
The Return on Total Capital has consistently increased from 11.29% in 2020 to 26.60% in 2024. This indicates that the company has been able to generate higher returns for its total capital employed, reflecting effective capital allocation.
Moreover, the Return on Equity (ROE) has shown steady growth, improving from 9.16% in 2020 to 20.48% in 2024. This signifies that Toll Brothers has been increasingly effective in generating profits for its shareholders' equity.
Overall, the upward trajectory of the profitability ratios suggests that Toll Brothers Inc has been able to enhance its operational efficiency and effectively utilize its assets and capital to generate higher profitability for its shareholders over the analyzed period.