Toll Brothers Inc (TOL)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	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	590,007	698,668	745,608
Total stockholders’ equity	US$ in thousands	7,019,270	6,797,160	6,693,390	6,420,220	6,201,350	6,006,090	5,523,270	5,363,890	5,255,870	5,295,020	5,034,910	4,913,070	4,786,840	4,875,240	4,675,070	4,564,520	4,655,550	5,071,820	4,939,080	4,941,150
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%

January 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,420,099K ÷ $7,019,270K
= 20.23%

To analyze Toll Brothers Inc.'s return on equity (ROE) over the past eight quarters, we observe a generally positive trend in ROE performance. The company's ROE has been consistently above 20% in each of the past five quarters, indicating strong profitability relative to shareholders' equity.

The highest ROE was recorded in Q3 2023 at 23.41%, followed closely by Q2 2023 at 22.21%. This suggests that Toll Brothers Inc. was able to generate significant returns for its shareholders during these periods.

While there was a slight decrease in ROE in Q1 2024 compared to the previous quarters, the overall trend remains positive and robust. The company's ability to maintain ROE above 20% indicates efficient utilization of equity to generate profits.

It is important to note that the comparison of ROE over time can provide valuable insights into the company's financial performance and management effectiveness. Toll Brothers Inc.'s consistent and relatively high ROE suggests that the company is effectively leveraging its equity to generate returns for its shareholders.