Toro Co (TTC)
Working capital 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 current assets | US$ in thousands | 1,764,900 | 1,798,800 | 1,675,400 | 1,489,180 | 1,427,650 |
| Total current liabilities | US$ in thousands | 976,000 | 948,600 | 1,063,600 | 937,019 | 855,797 |
| Working capital turnover | 5.81 | 5.29 | 7.32 | 7.12 | 5.85 |
October 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,583,800K ÷ ($1,764,900K – $976,000K)
= 5.81
Toro Co's working capital turnover has fluctuated over the past five years, ranging from 5.29 to 7.32. A higher ratio indicates that the company is efficiently using its working capital to generate sales. In 2022 and 2021, Toro Co saw a significant increase in its working capital turnover, suggesting improved efficiency in utilizing its current assets to drive revenue. However, the ratio slightly decreased in 2023 and 2024 compared to the peak in 2022. Overall, Toro Co has been effectively managing its working capital to support its operations and generate sales over the period analyzed.