Toll Brothers Inc (TOL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,040,187 | 1,987,748 | 2,005,668 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 7,670,930 | 7,414,860 | 7,307,970 | 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 |
| Return on total capital | 26.60% | 26.81% | 27.44% | 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% |
October 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,040,187K ÷ ($—K + $7,670,930K)
= 26.60%
Toll Brothers Inc's return on total capital has shown a fluctuating trend over the past couple of years. The company's return on total capital ranged from 11.91% in January 2020 to 27.44% in April 2024. In the latest period ending October 31, 2024, the return on total capital stood at 26.60%, indicating a strong performance in generating returns relative to the total capital employed.
The consistent improvement in the return on total capital from the beginning of 2022 to the current period suggests that Toll Brothers Inc has been effectively utilizing its capital to generate profits. This performance indicates efficient management of both debt and equity components of the capital structure. The company's ability to consistently achieve attractive returns on total capital reflects positively on its operational efficiency and profitability.
Overall, the upward trend in return on total capital demonstrates Toll Brothers Inc's ability to generate returns for its investors while effectively managing the capital invested in the business. It signifies the company's success in creating value for its stakeholders through a combination of profitability and efficient capital allocation strategies.
Peer comparison
Oct 31, 2024