Toll Brothers Inc (TOL)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,899,760	1,842,395	2,078,573	1,891,507	1,756,684	1,703,704	1,362,249	1,299,693	1,173,766	1,100,355	867,657	716,127	648,374	586,901	592,559	627,612	701,623	787,137	910,961	977,140
Revenue (ttm)	US$ in thousands	10,162,620	9,994,940	10,686,920	10,494,080	10,264,640	10,275,550	9,604,800	9,365,480	9,018,060	8,790,360	8,292,210	7,688,220	7,320,140	7,088,190	6,946,910	7,061,110	7,216,310	7,260,250	7,247,800	7,408,590
Pretax margin		18.69%	18.43%	19.45%	18.02%	17.11%	16.58%	14.18%	13.88%	13.02%	12.52%	10.46%	9.31%	8.86%	8.28%	8.53%	8.89%	9.72%	10.84%	12.57%	13.19%

January 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,899,760K ÷ $10,162,620K
= 18.69%

Toll Brothers Inc.'s pretax margin has shown a consistent upward trend over the past few quarters. In Q1 2024, the pretax margin reached 18.69%, which represents a slight increase from the previous quarter's 18.43%. This indicates that the company's ability to generate profits before taxes improved slightly in the most recent quarter.

Comparing the Q1 2024 pretax margin to the figures from the same quarter in the previous years, we observe a positive trend in profitability. The current pretax margin of 18.69% is an improvement over the Q1 2023 figure of 17.11% and the Q1 2022 figure of 16.58%. This suggests that Toll Brothers Inc. has been able to enhance its operational efficiency and/or pricing strategies to achieve better profit margins over time.

Furthermore, the pretax margin in Q1 2024 is notably higher than the figures from earlier quarters in 2022 and 2023, indicating a potential strengthening of the company's financial performance in the most recent period. The trend of increasing pretax margins over the past few quarters reflects positively on Toll Brothers Inc.'s profitability and financial health.

Overall, the upward trajectory of Toll Brothers Inc.'s pretax margin signals an improvement in the company's profitability and efficiency in generating profits before taxes. Continued monitoring of this metric will be essential to assess the sustainability of this positive trend in the future.