Toll Brothers Inc (TOL)

Return on equity (ROE)

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Net income	US$ in thousands	1,372,070	1,286,500	833,627	446,624	590,007
Total stockholders’ equity	US$ in thousands	6,797,160	6,006,090	5,295,020	4,875,240	5,071,820
ROE		20.19%	21.42%	15.74%	9.16%	11.63%

October 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,372,070K ÷ $6,797,160K
= 20.19%

Toll Brothers Inc.'s return on equity (ROE) has shown fluctuations over the past five years. In 2023, the ROE was 20.19%, slightly lower than the 21.42% in 2022. This could indicate a decrease in the company's ability to generate profits from its shareholders' equity. However, the ROE in 2023 still remains relatively strong compared to 2021 and 2020, when it was 15.74% and 9.16% respectively. The significant increase from 2020 to 2021 suggests an improvement in the company's efficiency in utilizing equity to generate profits. The ROE in 2019 was 11.63%, indicating a consistent upward trend in recent years. Overall, while there has been some volatility, the company has generally shown an ability to generate positive returns on shareholder equity.