Toll Brothers Inc (TOL)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	2,040,187	1,987,748	2,005,668	1,807,856	1,724,755	1,856,367	1,702,929	1,558,873	1,508,626	1,259,062	1,174,122	1,076,834	1,020,877	840,784	713,696	621,874	550,260	514,594	535,944	603,851
Total assets	US$ in thousands	13,367,900	13,359,700	13,250,400	12,522,000	12,527,000	12,353,700	11,989,500	11,984,900	12,288,700	11,743,300	11,544,600	11,283,900	11,537,800	11,264,100	10,975,000	10,864,000	11,065,700	10,537,400	10,810,800	10,587,200
Operating ROA		15.26%	14.88%	15.14%	14.44%	13.77%	15.03%	14.20%	13.01%	12.28%	10.72%	10.17%	9.54%	8.85%	7.46%	6.50%	5.72%	4.97%	4.88%	4.96%	5.70%

October 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $2,040,187K ÷ $13,367,900K
= 15.26%

Toll Brothers Inc's operating return on assets (operating ROA) has shown a generally increasing trend over the past few years, indicating improved efficiency in generating operating income relative to its assets. From January 2020 to October 2024, the operating ROA has increased from 4.97% to 15.26%, reflecting a significant improvement in the company's operational performance and asset utilization.

The consistent upward trend in operating ROA highlights Toll Brothers' ability to effectively manage its assets to generate operating profits. This increase suggests that the company has been able to enhance its operational efficiency and productivity, resulting in better returns on its invested assets.

The highest operating ROA of 15.26% in October 2024 demonstrates Toll Brothers' strong ability to generate operating income relative to its total assets, which is a positive indicator of the company's profitability and efficiency. This trend indicates that Toll Brothers has been successful in optimizing its asset utilization and operational performance in recent years.