Toll Brothers Inc (TOL)

Gross profit margin

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Gross profit	US$ in thousands	1,967,400	1,655,220	1,501,830	985,666	560,790
Revenue	US$ in thousands	10,846,700	9,994,940	10,275,600	8,755,150	7,088,190
Gross profit margin		18.14%	16.56%	14.62%	11.26%	7.91%

October 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,967,400K ÷ $10,846,700K
= 18.14%

The gross profit margin of Toll Brothers Inc has shown a consistent improvement over the past five years, indicating a positive trend in the company's ability to generate profit from its core operations. From 7.91% in October 2020, the margin has steadily increased to 18.14% in October 2024. This upward trajectory suggests that the company has been effectively managing its cost of goods sold and increasing its sales revenue relative to the cost of production. The substantial growth in gross profit margin signifies improved efficiency in production and pricing strategies, potentially resulting in higher profitability for the company. Overall, the progressive trend in gross profit margin reflects positively on Toll Brothers Inc's operational performance and financial health.