Toro Co (TTC)
Total 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 |
| Total assets | US$ in thousands | 3,582,800 | 3,644,300 | 3,556,000 | 2,936,140 | 2,853,230 |
| Total asset turnover | 1.28 | 1.23 | 1.26 | 1.34 | 1.17 |
October 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,583,800K ÷ $3,582,800K
= 1.28
The total asset turnover ratio for Toro Co has fluctuated over the past five years, ranging from a low of 1.17 in 2020 to a high of 1.34 in 2021. Overall, the company's total asset turnover has shown a general upward trend from 2020 to 2021, indicating improved efficiency in generating sales revenue relative to the total assets employed. However, the ratio slightly decreased in 2022 and 2023 before increasing again in 2024 to 1.28.
A total asset turnover ratio above 1 signifies that Toro Co is effectively using its assets to generate sales revenue. The fluctuations over the years may be attributed to changes in the company's business operations, asset utilization, or sales strategy. Further analysis is recommended to understand the underlying factors contributing to the variations in the total asset turnover ratio.