Toll Brothers Inc (TOL)
Debt-to-capital ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,797,160 | 6,006,090 | 5,295,020 | 4,875,240 | 5,071,820 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
October 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $6,797,160K)
= 0.00
The debt-to-capital ratio for Toll Brothers Inc. has shown a declining trend over the past five years, indicating a relatively lower reliance on debt for financing its operations. The ratio decreased from 0.44 in 2019 to 0.30 in 2023. This suggests that the company has been able to reduce its debt relative to its total capital employed, which may indicate improved financial stability and lower financial risk.
A lower debt-to-capital ratio implies that a company has a higher proportion of its capital financed through equity rather than debt. This could potentially lead to lower interest expenses and reduced financial risk, as the company is less leveraged. It may also signal to investors and creditors that the company is in a stronger financial position.
Overall, the declining trend in Toll Brothers Inc.'s debt-to-capital ratio suggests a prudent approach to capital structure management, potentially enhancing its long-term financial sustainability and risk management.
Peer comparison
Oct 31, 2023