Toll Brothers Inc (TOL)
Return on assets (ROA)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,571,200 | 1,372,070 | 1,286,500 | 833,627 | 446,624 |
| Total assets | US$ in thousands | 13,367,900 | 12,527,000 | 12,288,700 | 11,537,800 | 11,065,700 |
| ROA | 11.75% | 10.95% | 10.47% | 7.23% | 4.04% |
October 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,571,200K ÷ $13,367,900K
= 11.75%
Toll Brothers Inc's return on assets (ROA) has shown a positive trend over the past five years, increasing from 4.04% in October 2020 to 11.75% in October 2024. This improvement indicates that the company has been more effective in generating profits from its assets over time.
A higher ROA suggests that Toll Brothers Inc is efficiently utilizing its assets to generate earnings. This could be a result of effective asset management, operational efficiency, cost control, or revenue growth strategies implemented by the company.
The consistent growth in ROA from 2020 to 2024 reflects positively on Toll Brothers Inc's overall financial performance and management's ability to generate higher returns on the assets employed in the business. Investors and stakeholders may view this trend favorably as it signals improved profitability and efficiency in utilizing the company's resources.
Peer comparison
Oct 31, 2024