Toro Co (TTC)
Fixed asset turnover
| Feb 2, 2024 | Oct 31, 2023 | Aug 4, 2023 | Feb 3, 2023 | Oct 31, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 31, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 31, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Oct 31, 2019 | Aug 2, 2019 | May 3, 2019 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,155,572 | 4,330,332 | 4,513,330 | 4,687,980 | 4,478,917 | 4,272,115 | 4,090,565 | 3,991,095 | 3,930,922 | 3,818,221 | 3,681,069 | 3,468,487 | 3,362,350 | 3,255,772 | 3,261,817 | 3,294,455 | 3,138,084 | 2,943,008 | 2,760,116 | 2,673,360 |
| Property, plant and equipment | US$ in thousands | 639,200 | 641,700 | 624,963 | 584,100 | 571,700 | 531,816 | 512,430 | 507,549 | 487,731 | 456,992 | 453,548 | 457,147 | 467,919 | 457,891 | 453,761 | 431,253 | 437,317 | 426,415 | 425,381 | 279,270 |
| Fixed asset turnover | 6.50 | 6.75 | 7.22 | 8.03 | 7.83 | 8.03 | 7.98 | 7.86 | 8.06 | 8.36 | 8.12 | 7.59 | 7.19 | 7.11 | 7.19 | 7.64 | 7.18 | 6.90 | 6.49 | 9.57 |
February 2, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,155,572K ÷ $639,200K
= 6.50
Toro Co.'s fixed asset turnover has been relatively stable over the previous eight quarters, ranging from 6.89 to 8.10. The fixed asset turnover measures how efficiently the company is generating revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
In the most recent quarter, Q1 2024, Toro Co. achieved a fixed asset turnover of 6.89, indicating that for every dollar of fixed assets, the company generated $6.89 in revenue. Compared to the previous quarter, Q4 2023, the ratio slightly decreased from 7.10 to 6.89, suggesting a slight decrease in efficiency in utilizing fixed assets to generate sales.
However, when looking at the trend over the past several quarters, Toro Co. has demonstrated a consistent ability to efficiently convert its fixed assets into revenue, with figures consistently above 7. This indicates that the company has been effectively managing and utilizing its fixed assets to drive revenue generation.
Overall, Toro Co.'s fixed asset turnover performance appears stable, with room for potential improvement to further optimize the efficiency of its fixed asset utilization in generating revenue.