Toro Co (TTC)
Gross profit margin
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,549,300 | 1,577,600 | 1,504,600 | 1,338,490 | 1,189,770 |
| Revenue | US$ in thousands | 4,583,800 | 4,494,500 | 4,478,920 | 3,930,920 | 3,347,690 |
| Gross profit margin | 33.80% | 35.10% | 33.59% | 34.05% | 35.54% |
October 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,549,300K ÷ $4,583,800K
= 33.80%
The gross profit margin of Toro Co has shown some variability over the past five years. In 2024, the gross profit margin decreased to 33.80% from 35.10% in 2023. This decline may indicate challenges in maintaining profitability on sales after accounting for the cost of goods sold. However, it is important to note that the gross profit margin in 2024 is still relatively consistent with the margins seen in 2022 and 2021, which were 33.59% and 34.05%, respectively.
Comparing these figures to the highest gross profit margin of 35.54% in 2020, there has been a slight downward trend in profitability over the years. This trend suggests a need for Toro Co to potentially focus on cost management strategies or consider pricing adjustments to improve its gross profit margins in the future. Overall, the company's gross profit margin performance indicates the need for careful monitoring and strategic decision-making to ensure sustained profitability in its operations.