Toll Brothers Inc (TOL)
Operating return on assets (Operating ROA)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,040,190 | 1,724,760 | 1,508,630 | 1,020,880 | 550,260 |
| Total assets | US$ in thousands | 13,367,900 | 12,527,000 | 12,288,700 | 11,537,800 | 11,065,700 |
| Operating ROA | 15.26% | 13.77% | 12.28% | 8.85% | 4.97% |
October 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,040,190K ÷ $13,367,900K
= 15.26%
Toll Brothers Inc's operating return on assets (ROA) has shown a positive trend over the past five years, indicating improving operational efficiency and productivity. The operating ROA has steadily increased from 4.97% in October 2020 to 15.26% in October 2024, reflecting a consistent improvement in the company's ability to generate operating profit relative to its total assets.
This improvement suggests that Toll Brothers Inc has been effectively utilizing its assets to generate operating income, which is a positive indicator of management effectiveness and operational performance. The increasing trend in operating ROA signifies that the company's operational efficiency has been strengthening over the years, leading to higher profitability per unit of assets employed.
Overall, the rising trend in operating ROA for Toll Brothers Inc indicates a positive trajectory for the company in terms of operational performance and efficiency, highlighting its ability to generate profits from its asset base.
Peer comparison
Oct 31, 2024