Toll Brothers Inc (TOL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 17.49% | 16.96% | 17.37% | 16.23% | 15.19% | 14.68% | 13.11% | 12.54% | 11.94% | 11.61% | 10.15% | 9.29% | 8.64% | 7.91% | 7.88% | 8.06% | 8.70% | 9.88% | 13.71% | 16.55% |
| Operating profit margin | 17.79% | 17.26% | 17.37% | 16.23% | 15.19% | 14.68% | 13.11% | 12.54% | 11.94% | 11.61% | 10.14% | 9.28% | 8.50% | 7.76% | 7.41% | 7.59% | 8.37% | 9.38% | 10.96% | 11.51% |
| 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% |
| Net profit margin | 13.97% | 13.73% | 14.66% | 13.59% | 12.92% | 12.52% | 10.62% | 10.48% | 9.86% | 9.48% | 7.94% | 7.00% | 6.64% | 6.30% | 6.47% | 6.81% | 7.41% | 8.13% | 9.64% | 10.06% |
Toll Brothers Inc.'s profitability ratios have shown a general upward trend over the quarters analyzed. The gross profit margin has gradually improved from 24.20% in Q4 2022 to 26.92% in Q1 2024, indicating the company's ability to control direct costs related to the production of homes.
Similarly, the operating profit margin has increased from 14.58% in Q2 2022 to 17.79% in Q1 2024, reflecting efficient management of operating expenses. The pretax margin has also exhibited a positive trend, rising from 13.88% in Q2 2022 to 18.69% in Q1 2024, indicating effective cost management and possibly higher revenue generation.
Furthermore, the net profit margin saw a steady improvement from 10.48% in Q2 2022 to 13.97% in Q1 2024, reflecting the company's ability to generate profit after accounting for all expenses, including taxes. Overall, these profitability ratios suggest that Toll Brothers Inc. has been effectively managing its costs and improving its bottom line performance over the quarters analyzed.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 11.34% | 10.95% | 12.69% | 11.89% | 11.06% | 10.47% | 8.69% | 8.50% | 7.88% | 7.23% | 5.85% | 4.91% | 4.48% | 4.04% | 4.27% | 4.45% | 5.05% | 5.45% | 6.68% | 7.26% |
| Return on total capital | 25.76% | 25.37% | 27.73% | 26.52% | 25.14% | 25.12% | 22.80% | 21.89% | 20.49% | 19.28% | 16.70% | 14.57% | 13.24% | 11.91% | 12.67% | 13.75% | 15.07% | 15.52% | 18.44% | 19.78% |
| Return on equity (ROE) | 20.23% | 20.19% | 23.41% | 22.21% | 21.38% | 21.42% | 18.47% | 18.30% | 16.92% | 15.74% | 13.08% | 10.96% | 10.16% | 9.16% | 9.62% | 10.54% | 11.49% | 11.63% | 14.15% | 15.09% |
Toll Brothers Inc. has shown consistent and relatively strong profitability ratios over the past eight quarters.
The Operating return on assets (Operating ROA) has been trending upwards, indicating that the company is generating more operating income from its assets over time. This suggests that Toll Brothers is operating more efficiently and effectively in utilizing its assets to generate profits.
The Return on assets (ROA) has also been relatively steady, averaging around 11%-12%. This indicates that Toll Brothers is able to generate profits from its total assets consistently over time.
The Return on total capital has also been on an upward trend, showing that Toll Brothers is generating a higher return on the total capital employed in the business. This can indicate that the company is managing its capital structure effectively and increasing shareholder value.
Lastly, the Return on equity (ROE) has been consistently strong, ranging from 18% to 23%. This indicates that Toll Brothers is able to generate a high return for its shareholders based on the equity invested in the company.
Overall, based on the profitability ratios, Toll Brothers Inc. appears to be effectively managing its assets, capital, and equity to generate consistent and strong returns for its stakeholders.