Toll Brothers Inc (TOL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Toll Brothers Inc indicate the company's ability to meet its financial obligations and manage its debt levels relative to its assets and equity. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently been reported as 0.00, suggesting the company has not had any significant debt compared to its assets and capital.
However, the financial leverage ratio shows fluctuations over the periods analyzed, ranging from 1.74 to 2.37. A higher financial leverage ratio indicates a higher level of debt relative to equity, which can increase financial risk for the company. Toll Brothers' increasing trend in the financial leverage ratio over time may indicate a higher reliance on debt financing, potentially leading to heightened financial risk.
Overall, while the company has low debt ratios in terms of assets, capital, and equity, the increasing trend in the financial leverage ratio warrants careful monitoring of Toll Brothers’ debt management and financial risk management strategies to ensure sustainable solvency in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | — | — | — |
The interest coverage ratio for Toll Brothers Inc has shown a fluctuating trend over the periods provided. From January 2020 to July 2020, there is a significant increase in the interest coverage ratio from 237.90 to 59.03, indicating a strong ability to cover interest expenses with operating income.
However, from July 2020 to January 2023, there is a gradual decline in the interest coverage ratio, dropping to as low as 9.78 in January 2023. This suggests a potential strain on the company's ability to cover interest payments with its operating income during this period.
Subsequently, there is an improvement in the interest coverage ratio from January 2023 to July 2024, reaching as high as 41.06 in July 2024. This indicates a recovery in the company's ability to cover interest expenses.
It is important to note that the interest coverage ratio for October 2024 is not available in the data provided. Overall, fluctuations in the interest coverage ratio reflect changes in Toll Brothers Inc's ability to meet its interest obligations with its operating income over the periods analyzed.