Toro Co (TTC)
Working capital 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 |
| Total current assets | US$ in thousands | 1,764,900 | 1,913,900 | 2,019,200 | 1,966,500 | 1,798,800 | 1,731,800 | 1,826,800 | 1,757,700 | 1,675,400 | 1,604,360 | 1,663,680 | 1,437,260 | 1,489,180 | 1,545,790 | 1,559,490 | 1,456,740 | 1,427,650 | 1,384,250 | 1,374,550 | 1,220,510 |
| Total current liabilities | US$ in thousands | 976,000 | 984,400 | 1,048,700 | 921,900 | 948,600 | 907,500 | 1,024,000 | 988,000 | 1,063,600 | 1,011,260 | 1,110,730 | 986,064 | 937,019 | 958,440 | 988,904 | 819,541 | 855,797 | 797,112 | 855,733 | 824,307 |
| Working capital turnover | 5.77 | 4.78 | 4.49 | 4.16 | 5.29 | 5.69 | 5.94 | 6.09 | 7.32 | 7.20 | 7.40 | 8.85 | 7.12 | 6.50 | 6.45 | 5.44 | 5.88 | 5.55 | 6.29 | 8.32 |
October 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,550,900K ÷ ($1,764,900K – $976,000K)
= 5.77
The working capital turnover for Toro Co has shown fluctuations over the periods analyzed. It is calculated by dividing net sales by average working capital. A higher working capital turnover ratio indicates that the company is efficient in generating sales from its working capital.
In the latest period of October 31, 2024, the working capital turnover was 5.77. This implies that the company generated $5.77 in sales for every $1 of working capital invested. The ratio has generally been decreasing over recent quarters from a peak of 8.85 on January 28, 2022. This trend suggests that Toro Co may be experiencing challenges in efficiently utilizing its working capital to generate sales.
It is essential for Toro Co to closely monitor and manage its working capital turnover ratio to ensure optimal efficiency in utilizing its working capital resources to drive revenue growth. Further analysis of the company's operational efficiency, liquidity position, and overall financial performance would provide more insights into the factors influencing the working capital turnover ratio.