Toll Brothers Inc (TOL)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,040,187	1,987,748	2,005,668	1,807,856	1,724,755	1,856,367	1,702,929	1,558,873	1,508,626	1,259,062	1,174,122	1,076,834	1,020,877	840,784	715,916	633,659	580,481	592,559	627,612	701,623
Interest expense (ttm)	US$ in thousands	0	48,842	48,842	53,720	97,684	145,892	150,170	159,449	141,234	103,209	125,593	145,676	128,222	71,637	44,975	10,735	2,440	0	0	0
Interest coverage		—	40.70	41.06	33.65	17.66	12.72	11.34	9.78	10.68	12.20	9.35	7.39	7.96	11.74	15.92	59.03	237.90	—	—	—

October 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,040,187K ÷ $0K
= —

The interest coverage ratio for Toll Brothers Inc has fluctuated over the periods mentioned. The ratio measures the company's ability to pay its interest expenses from its operating income.

Toll Brothers Inc experienced a significant improvement in its interest coverage ratio from October 2020 to January 2021, indicating a stronger ability to cover its interest payments during that time. However, there was a slight decline in the ratio in April and July 2021, before a substantial increase in October 2021, reflecting stronger earnings relative to interest expenses at that point.

From January 2022 to October 2024, the interest coverage ratio fluctuated, ranging from 7.39 to 41.06. The ratio peaked in October 2024 at 41.06, suggesting a substantial improvement in the company's ability to cover its interest obligations compared to the prior periods.

Overall, the trend in the interest coverage ratio for Toll Brothers Inc shows variability, with periods of strong and weak coverage. Investors and analysts should continue to monitor the company's financial performance and leverage levels to assess its ability to meet interest payments in the future.