Toll Brothers Inc (TOL)

Financial leverage ratio

		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	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Total assets	US$ in thousands	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	10,828,100	10,452,100	10,276,700
Total stockholders’ equity	US$ in thousands	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	5,071,820	4,939,080	4,941,150
Financial leverage ratio		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	2.13	2.12	2.08

January 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,522,000K ÷ $7,019,270K
= 1.78

The financial leverage ratio of Toll Brothers Inc. has exhibited a gradual decline over the last several quarters, indicating an improvement in the company's leverage position. The ratio decreased from 2.15 in Q2 2022 to 1.78 in Q1 2024, reflecting a reduction in the company's reliance on debt to finance its operations and investments.

This trend suggests that Toll Brothers has been able to strengthen its balance sheet by either reducing debt levels or increasing equity financing. A lower financial leverage ratio implies that the company has a lower proportion of debt relative to its equity, which can enhance its financial stability and flexibility in the long term.

Despite the positive trend, it is important to monitor the financial leverage ratio closely in future periods to ensure that Toll Brothers maintains a sustainable capital structure and adequate financial resources to support its growth and operations.