Toro Co (TTC)
Fixed asset turnover
| Oct 31, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Oct 31, 2023 | Aug 4, 2023 | May 5, 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,550,900 | 4,443,272 | 4,353,172 | 4,345,472 | 4,494,472 | 4,686,560 | 4,771,130 | 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 |
| Property, plant and equipment | US$ in thousands | 644,800 | 635,700 | 637,800 | 639,200 | 641,700 | 625,000 | 605,800 | 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 |
| Fixed asset turnover | 7.06 | 6.99 | 6.83 | 6.80 | 7.00 | 7.50 | 7.88 | 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 |
October 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,550,900K ÷ $644,800K
= 7.06
The fixed asset turnover ratio for Toro Co has been relatively stable over the past few years, ranging between 6.80 and 8.36. This ratio measures how efficiently the company is generating sales revenue from its investment in fixed assets such as property, plant, and equipment.
A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales, which is generally viewed positively as it implies better operational performance and asset utilization.
Toro Co's fixed asset turnover has generally been above 7, indicating that the company has been efficient in generating sales from its fixed assets. The slight fluctuations in the ratio over time may reflect changes in the company's business operations, investments in fixed assets, or improvements in operational efficiency.
Overall, with a consistently high fixed asset turnover ratio, Toro Co appears to be effectively utilizing its fixed assets to drive revenue generation.