Toll Brothers Inc (TOL)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	1,571,195	1,541,322	1,581,500	1,420,099	1,372,071	1,567,071	1,425,749	1,326,126	1,286,500	1,020,294	981,759	889,032	833,627	658,614	538,443	486,247	446,624	449,622	481,179	534,833
Total assets	US$ in thousands	13,367,900	13,359,700	13,250,400	12,522,000	12,527,000	12,353,700	11,989,500	11,984,900	12,288,700	11,743,300	11,544,600	11,283,900	11,537,800	11,264,100	10,975,000	10,864,000	11,065,700	10,537,400	10,810,800	10,587,200
ROA		11.75%	11.54%	11.94%	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%

October 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,571,195K ÷ $13,367,900K
= 11.75%

Toll Brothers Inc's return on assets (ROA) has demonstrated a generally positive trend over the past few years. The ROA has shown an upward trend since the beginning of 2020, increasing from 4.27% in January 2020 to 11.75% in October 2024. This indicates that the company has been effectively utilizing its assets to generate profits for its shareholders.

The ROA peaked at 12.69% in July 2023 before experiencing a slight dip in the following periods. Despite these fluctuations, the ROA has remained above 10% since October 2023, reflecting the company's consistent ability to generate earnings relative to its total assets.

Overall, Toll Brothers Inc's ROA indicates that the company has been efficient in utilizing its assets to generate profitability. This metric is important for investors as it provides insight into the company's ability to generate returns on the resources it employs.