Toll Brothers Inc (TOL)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
October 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $6,797,160K
= 0.00
The debt-to-equity ratio of Toll Brothers Inc. has exhibited a declining trend over the past five years, indicating a strengthening financial position in terms of leverage. As of Oct 31, 2023, the ratio stands at 0.42, a decrease from 0.55 in the previous year and a substantial reduction from 0.77 in 2019. This signifies a decreasing reliance on debt financing relative to equity, which may suggest improved financial stability and a lower risk of financial distress. The declining trend in the debt-to-equity ratio may reflect effective management of debt levels and prudent capital structure decisions by the company. This trend could be viewed positively by creditors and investors, as it indicates a decreasing reliance on external financing and a stronger equity position.
Peer comparison
Oct 31, 2023