Toll Brothers Inc (TOL)

Gross profit margin

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Gross profit (ttm)	US$ in thousands	2,012,392	1,956,877	1,974,797	1,776,985	1,695,355	1,856,367	1,702,929	1,558,873	1,508,626	1,259,062	1,174,122	1,076,834	1,020,877	841,344	714,256	632,404	560,790	547,510	568,860	627,942
Revenue (ttm)	US$ in thousands	10,846,740	10,533,430	10,493,130	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
Gross profit margin		18.55%	18.58%	18.82%	17.49%	16.96%	17.37%	16.23%	15.19%	14.68%	13.11%	12.54%	11.94%	11.61%	10.15%	9.29%	8.64%	7.91%	7.88%	8.06%	8.70%

October 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,012,392K ÷ $10,846,740K
= 18.55%

Toll Brothers Inc's gross profit margin has shown a general upward trend over the past few years, indicating improved efficiency in generating profits from its sales. The company's gross profit margin has consistently increased from 8.70% in January 2020 to 18.55% in October 2024. This suggests that Toll Brothers has been able to control its cost of goods sold and increase the profitability of its operations.

The rising trend in gross profit margin reflects positively on Toll Brothers' pricing strategies, cost management, and production efficiency. It indicates that the company has been able to maintain a healthy balance between generating revenue and managing production costs effectively. This trend may be a result of various factors such as economies of scale, improved operational efficiency, or better negotiation with suppliers.

Overall, the increase in Toll Brothers' gross profit margin bodes well for the company's financial performance and indicates a positive trend in its profitability and operational efficiency. Investors and stakeholders may view this as a sign of a healthy and competitive business model.