Toll Brothers Inc (TOL)

Financial leverage ratio

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020
Total assets	US$ in thousands	13,367,900	13,359,700	13,250,400	12,522,000	12,527,000	12,353,700	11,989,500	11,984,900	12,288,700	11,743,300	11,544,600	11,283,900	11,537,800	11,264,100	10,975,000	10,864,000	11,065,700	10,537,400	10,810,800	10,587,200
Total stockholders’ equity	US$ in thousands	7,670,930	7,414,860	7,307,970	7,019,270	6,797,160	6,693,390	6,420,220	6,201,350	6,006,090	5,523,270	5,363,890	5,255,870	5,295,020	5,034,910	4,913,070	4,786,840	4,875,240	4,675,070	4,564,520	4,655,550
Financial leverage ratio		1.74	1.80	1.81	1.78	1.84	1.85	1.87	1.93	2.05	2.13	2.15	2.15	2.18	2.24	2.23	2.27	2.27	2.25	2.37	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 been fluctuating over the past few years. The ratio has shown a general increasing trend, indicating that the company's reliance on debt to finance its operations has been growing. As of October 31, 2024, the financial leverage ratio stands at 1.74, which is lower compared to the previous quarter but still higher than the levels seen in the earlier periods.

The increasing trend in the financial leverage ratio could be a cause for concern, as higher leverage implies higher financial risk for the company. A higher ratio indicates that a larger proportion of the company's assets are funded by debt, which can lead to higher interest expenses and potential financial difficulties in the event of economic downturns or other adverse circumstances.

It is important for investors and stakeholders to monitor Toll Brothers Inc's financial leverage ratio closely, as it provides insights into the company's capital structure and risk exposure. Further analysis of the company's debt levels, profitability, and overall financial health should be conducted to assess the implications of the changing leverage ratio on the company's financial performance and stability.