Toll Brothers Inc (TOL)

Pretax margin

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	2,085,640	1,842,370	1,703,730	1,100,320	586,901
Revenue	US$ in thousands	10,846,700	9,994,940	10,275,600	8,755,150	7,088,190
Pretax margin		19.23%	18.43%	16.58%	12.57%	8.28%

October 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $2,085,640K ÷ $10,846,700K
= 19.23%

Toll Brothers Inc's pretax margin has shown a positive trend over the past five years, increasing from 8.28% in October 2020 to 19.23% in October 2024. This indicates that the company has been progressively improving its efficiency in managing operating expenses and generating profits before taxes. The consistent growth in pretax margin suggests that Toll Brothers has been successful in enhancing operational performance and financial health over the years. This trend is generally favorable for stakeholders as it signifies the company's ability to generate higher profits relative to its revenue, which is essential for sustainable growth and shareholder value creation.