Toro Co (TTC)
Operating return on assets (Operating ROA)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 430,700 | 575,700 | 518,280 | 426,357 | 325,029 |
| Total assets | US$ in thousands | 3,644,300 | 3,556,000 | 2,936,140 | 2,853,230 | 2,330,550 |
| Operating ROA | 11.82% | 16.19% | 17.65% | 14.94% | 13.95% |
October 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $430,700K ÷ $3,644,300K
= 11.82%
The operating return on assets (operating ROA) for Toro Co. has shown fluctuations over the past five years. In 2023, the operating ROA decreased to 15.97% from 16.19% in 2022. However, this decrease was from a relatively high level in 2022. Comparing the 2023 ROA to the previous years, it is still higher than the levels seen in 2020 and 2019. This indicates that the company's operating performance, relative to its assets, remains relatively strong. It is important to note that while the 2021 operating ROA was higher than 2023, the company was still able to maintain a respectable level of operating return on assets, showing consistent operational efficiency.