Toll Brothers Inc (TOL)
Solvency ratios
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.84 | 2.05 | 2.18 | 2.27 | 2.13 |
The solvency ratios of Toll Brothers Inc. indicate the company's ability to meet its long-term financial obligations. Over the past five years, the debt-to-assets ratio has shown a decreasing trend, indicating a reduction in the proportion of assets financed by debt. This implies a stronger asset base relative to debt, which is a positive sign for solvency.
Similarly, the debt-to-capital and debt-to-equity ratios have also displayed a declining trend, reflecting a lower reliance on debt for financing capital and equity, respectively. This suggests that the company has been successful in improving its capital and equity structure, which enhances its long-term solvency.
The financial leverage ratio, which measures the proportion of assets financed by debt relative to equity, has fluctuated but has generally shown a decreasing trend. This indicates a decreasing reliance on debt to fund assets, further supporting the company's long-term solvency.
Overall, the trend in these solvency ratios indicates an improving financial position for Toll Brothers Inc., as it has been able to reduce its reliance on debt for financing its operations and investments, which bodes well for its long-term financial stability and ability to meet its financial obligations.
Coverage ratios
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | 10.68 | 8.47 | 225.52 | — |
Unfortunately, the provided data is insufficient to calculate the interest coverage ratio for Toll Brothers Inc. for the years 2023 and 2019. However, based on the available data, the interest coverage ratio increased from 4.24 in 2020 to 6.87 in 2021, indicating an improvement in the company's ability to cover interest expenses with its operating income. It would be beneficial to have additional data points to track the trend more accurately and assess the company's financial health comprehensively.