Toll Brothers Inc (TOL)
Financial leverage ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,367,900 | 12,527,000 | 12,288,700 | 11,537,800 | 11,065,700 |
| Total stockholders’ equity | US$ in thousands | 7,670,930 | 6,797,160 | 6,006,090 | 5,295,020 | 4,875,240 |
| Financial leverage ratio | 1.74 | 1.84 | 2.05 | 2.18 | 2.27 |
October 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,367,900K ÷ $7,670,930K
= 1.74
The financial leverage ratio of Toll Brothers Inc has exhibited a declining trend over the past five years, decreasing from 2.27 in October 2020 to 1.74 in October 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a lower level of debt relative to assets, which can decrease financial risk and improve financial stability. Toll Brothers Inc's decreasing financial leverage ratio may indicate a prudent financial management strategy aimed at enhancing the company's financial health and sustainability.
Peer comparison
Oct 31, 2024