Toll Brothers Inc (TOL)
Return on total capital
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,040,190 | 1,724,760 | 1,508,630 | 1,020,880 | 550,260 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 7,670,930 | 6,797,160 | 6,006,090 | 5,295,020 | 4,875,240 |
| Return on total capital | 26.60% | 25.37% | 25.12% | 19.28% | 11.29% |
October 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,040,190K ÷ ($—K + $7,670,930K)
= 26.60%
The return on total capital for Toll Brothers Inc has shown a consistent upward trend over the past five years, indicating improved efficiency in generating profits from its capital investments. In particular, the return on total capital has increased steadily from 11.29% in October 2020 to 26.60% in October 2024. This positive trajectory suggests that Toll Brothers Inc has been effectively utilizing its total capital to generate returns for its shareholders. The company's ability to sustain and improve its return on total capital highlights its operational effectiveness and financial strength.
Peer comparison
Oct 31, 2024