Toro Co (TTC)
Profitability ratios
Return on sales
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.80% | 35.10% | 33.59% | 34.05% | 35.54% |
| Operating profit margin | 11.63% | 9.58% | 12.85% | 13.18% | 12.74% |
| Pretax margin | 11.19% | 8.91% | 12.34% | 12.72% | 12.16% |
| Net profit margin | 9.14% | 7.34% | 9.90% | 10.43% | 9.85% |
Toro Co's profitability ratios have shown fluctuations over the past five years. The gross profit margin has ranged from 33.59% to 35.54%, with a decrease in 2024 to 33.80%. This indicates a slight decline in the company's ability to control its production costs and generate profits from sales.
The operating profit margin has varied more significantly, ranging from 9.58% to 13.18%. In 2024, there was an improvement to 11.63%, suggesting better operational efficiency in managing expenses relative to sales.
The pretax margin also experienced fluctuations, with a low of 8.91% and a high of 12.72%. In 2024, the pretax margin increased to 11.19%, indicating a stronger ability to generate profits before considering taxes.
The net profit margin, which represents the bottom line profitability after all expenses have been deducted, ranged from 7.34% to 10.43%. In 2024, the net profit margin improved to 9.14%, reflecting a positive trend in overall profitability despite the slight decrease in gross profit margin.
Overall, Toro Co has demonstrated mixed results in its profitability ratios over the years, with improvements in operating profit margin, pretax margin, and net profit margin in 2024, indicating enhanced efficiency and profitability performance compared to the previous year.
Return on investment
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.89% | 11.82% | 16.19% | 17.65% | 14.94% |
| Return on assets (ROA) | 11.69% | 9.05% | 12.47% | 13.96% | 11.56% |
| Return on total capital | 21.65% | 18.06% | 25.11% | 28.68% | 24.37% |
| Return on equity (ROE) | 26.99% | 21.82% | 32.80% | 35.61% | 29.57% |
Toro Co's profitability ratios have shown fluctuations over the past five years.
1. Operating Return on Assets (Operating ROA): The Operating ROA has displayed an upward trend from 2019 to 2022, indicating improved operational efficiency and profitability. However, in 2023 and 2024, there was a slight decline in Operating ROA, suggesting a potential decrease in the company's ability to generate operating income from its assets.
2. Return on Assets (ROA): The ROA metric also follows a similar pattern to the Operating ROA, showing an increase until 2022 and then a decline in the following years. This demonstrates that while Toro Co has been generating profits relative to its total assets, the efficiency of asset utilization may have decreased in recent years.
3. Return on Total Capital: The Return on Total Capital has exhibited a consistent increase from 2020 to 2022, indicating a higher return on the company's total invested capital. This metric reflects the company's ability to generate profits from both debt and equity sources.
4. Return on Equity (ROE): The ROE ratio has shown a fluctuating trend over the analyzed period. While there was a general increase in ROE until 2022, it declined slightly in the subsequent years. The ROE metric is a key indicator of shareholders' returns on their investments and is affected by both profitability and leverage.
In summary, Toro Co's profitability ratios have shown mixed results, with some metrics improving while others have declined in recent years. Analysis of these ratios can provide insights into the company's operational efficiency, asset utilization, and overall profitability.