Toll Brothers Inc (TOL)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,807,856	1,724,755	1,856,367	1,702,929	1,558,873	1,508,626	1,259,062	1,174,122	1,076,834	1,020,877	840,784	715,916	633,659	580,481	592,559	627,612	701,623	787,137	910,961	977,140
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		25.76%	25.37%	27.73%	26.52%	25.14%	25.12%	22.80%	21.89%	20.49%	19.28%	16.70%	14.57%	13.24%	11.91%	12.67%	13.75%	15.07%	15.52%	18.44%	19.78%

January 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,807,856K ÷ ($—K + $7,019,270K)
= 25.76%

Toll Brothers Inc.'s return on total capital has shown a relatively consistent trend over the past eight quarters, ranging from 16.41% to 19.67%. This indicates that the company has been able to effectively generate returns from the total capital employed in its operations. The highest return on total capital was observed in Q3 2023 at 19.67%, reflecting a strong performance during that period.

Overall, the company's return on total capital appears to be healthy and stable, suggesting efficient utilization of resources to generate profits. Investors and stakeholders may view this as a positive indicator of the company's financial health and management effectiveness in generating returns from its capital base.