Toll Brothers Inc (TOL)
Interest coverage
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,040,190 | 1,724,760 | 1,508,630 | 1,020,880 | 550,260 |
| Interest expense | US$ in thousands | — | — | 141,234 | 120,477 | 2,440 |
| Interest coverage | — | — | 10.68 | 8.47 | 225.52 |
October 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,040,190K ÷ $—K
= —
The interest coverage ratio for Toll Brothers Inc has shown a significant fluctuation over the past five years. In particular, the ratio was exceptionally high at 225.52 in October 2020, indicating the company's ability to cover its interest expenses multiple times over with its earnings. However, this ratio dropped to 8.47 in October 2021 and further decreased to 10.68 in October 2022. The absence of data for the years 2023 and 2024 makes it challenging to analyze the trend comprehensively. A declining interest coverage ratio suggests that Toll Brothers Inc may have faced challenges in generating sufficient earnings to cover its interest expenses efficiently in those years. This could potentially signal increased financial risk and warrants further investigation into the company's financial health and performance.
Peer comparison
Oct 31, 2024