Toll Brothers Inc (TOL)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	2,085,643	2,069,555	2,118,961	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
Revenue (ttm)	US$ in thousands	10,846,740	10,533,430	10,493,130	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
Pretax margin		19.23%	19.65%	20.19%	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%

October 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $2,085,643K ÷ $10,846,740K
= 19.23%

The pretax margin of Toll Brothers Inc has shown a generally increasing trend over the past 5 years, indicating improvements in the company's profitability before taxes. The pretax margin has ranged from a low of 8.28% in January 2021 to a high of 20.19% in April 2024. This suggests that the company has effectively managed its expenses relative to its revenue during this period.

The pretax margin has seen fluctuations, but overall, there has been a positive trajectory, with the most recent figure of 19.23% in October 2024 representing a solid performance. This indicates that Toll Brothers Inc has been successful in controlling costs and generating healthy profits before accounting for taxes. It is essential for investors and stakeholders to monitor this metric to assess the company's operational efficiency and financial health.