Toro Co (TTC)
Fixed asset turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,583,800 | 4,494,500 | 4,478,920 | 3,930,920 | 3,347,690 |
| Property, plant and equipment | US$ in thousands | 644,800 | 641,700 | 571,700 | 487,731 | 467,919 |
| Fixed asset turnover | 7.11 | 7.00 | 7.83 | 8.06 | 7.15 |
October 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,583,800K ÷ $644,800K
= 7.11
The fixed asset turnover ratio for Toro Co over the past five years has remained relatively stable, ranging from 7.00 to 8.06. This ratio indicates that Toro Co generates a high level of revenue for each dollar invested in fixed assets. A higher fixed asset turnover ratio is generally viewed positively as it suggests efficient utilization of the company's fixed assets to generate sales.
The decreasing trend observed in the fixed asset turnover ratio from 2019 to 2022, followed by a slight increase in 2023 and 2024, could indicate fluctuations in the company's asset utilization efficiency over these years. Further investigation into the reasons behind these fluctuations, such as changes in production processes, asset management strategies, or sales volumes, would be necessary to provide a more in-depth analysis of Toro Co's operational performance.
Overall, a consistent high fixed asset turnover ratio suggests that Toro Co is effectively utilizing its fixed assets to drive revenue generation, but monitoring any significant fluctuations in this ratio over time is essential for assessing the company's operational effectiveness and efficiency.