Toll Brothers Inc (TOL)

Net profit margin

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Net income	US$ in thousands	1,372,070	1,286,500	833,627	446,624	590,007
Revenue	US$ in thousands	9,994,940	10,275,600	8,755,150	7,088,190	7,260,240
Net profit margin		13.73%	12.52%	9.52%	6.30%	8.13%

October 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $1,372,070K ÷ $9,994,940K
= 13.73%

The net profit margin of Toll Brothers Inc. has shown a positive trend over the past five years, increasing from 8.17% in 2019 to 13.73% in 2023. This indicates an improvement in the company's ability to convert revenue into profit. The company's profitability has generally been on an upward trajectory, with a significant increase in 2021 and a further improvement in 2022 and 2023. This trend suggests that Toll Brothers Inc. has been effectively managing its costs and has potentially achieved better operational efficiency and higher sales prices. Overall, the increasing net profit margin reflects positively on the company's financial performance and management's effectiveness in controlling expenses and generating profits.