Toll Brothers Inc (TOL)

Debt-to-assets ratio

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—
Total assets	US$ in thousands	12,527,000	12,288,700	11,537,800	11,065,700	10,828,100
Debt-to-assets ratio		0.00	0.00	0.00	0.00	0.00

October 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $12,527,000K
= 0.00

The debt-to-assets ratio measures the proportion of a company's assets that are financed by debt. A lower ratio indicates less reliance on borrowing to fund its operations and investments.

Looking at the historical trend of Toll Brothers Inc.'s debt-to-assets ratio from 2019 to 2023, we observe a declining pattern. In 2019 and 2020, the ratio stood at 0.36, signifying that 36% of the company's assets were financed by debt. Subsequently, the ratio decreased to 0.31 in 2021, 0.27 in 2022, and further to 0.23 in 2023.

This decline suggests that Toll Brothers has been reducing its debt relative to its assets over the years, indicating a strengthening financial position. It may also reflect effective management of debt levels or a strategic shift in funding strategies. A lower ratio implies a lower financial risk and greater financial flexibility for the company, as it has a larger proportion of assets financed by equity.

Overall, the downward trend in Toll Brothers Inc.'s debt-to-assets ratio indicates a positive financial trajectory, reflecting prudent management of its capital structure and potentially enhancing its ability to weather economic downturns and pursue growth opportunities.