Toll Brothers Inc (TOL)

Operating return on assets (Operating ROA)

		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	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Operating income (ttm)	US$ in thousands	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	680,800	794,337	853,005
Total assets	US$ in thousands	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	10,828,100	10,452,100	10,276,700
Operating ROA		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%	6.29%	7.60%	8.30%

January 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,807,856K ÷ $12,522,000K
= 14.44%

The operating return on assets (operating ROA) of Toll Brothers Inc. has exhibited a generally positive trend over the past eight quarters. The company's operating ROA has been consistently increasing from Q2 2022 to Q1 2024, showing improvement in its ability to generate earnings from its assets. The figures ranged from 11.83% in Q2 2022 to 14.98% in Q3 2023, with a slight dip in Q1 2023 at 13.01%.

This upward trend in operating ROA indicates that Toll Brothers Inc. has been effectively utilizing its assets to generate operating income over the quarters analyzed. It suggests that the company's operational efficiency and profitability have been advancing, which is a positive sign for investors and stakeholders.

Overall, the trajectory of Toll Brothers Inc.'s operating ROA reflects a solid performance in terms of generating operating income relative to its assets, indicating sound financial health and efficient use of resources during the period under review.