Toro Co (TTC)
Operating return on assets (Operating ROA)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 533,300 | 430,700 | 575,700 | 518,280 | 426,357 |
| Total assets | US$ in thousands | 3,582,800 | 3,644,300 | 3,556,000 | 2,936,140 | 2,853,230 |
| Operating ROA | 14.89% | 11.82% | 16.19% | 17.65% | 14.94% |
October 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $533,300K ÷ $3,582,800K
= 14.89%
Based on the data provided for Toro Co's operating return on assets (Operating ROA) over the years, we can observe fluctuations in the performance of the company in utilizing its assets to generate operating income.
In 2024, Toro Co's operating ROA stood at 14.89%, representing an increase from the previous year's 11.82%. This improvement indicates that the company was more efficient in generating operating profits relative to its asset base in 2024.
Comparing the 2024 operating ROA to historical data, we note that it is lower than the 16.19% recorded in 2022, and the 17.65% in 2021. This suggests a potential decline in asset utilization efficiency in 2024 compared to the two preceding years.
However, the 2024 operating ROA of 14.89% is higher than the figure from two years prior, which was 14.94% in 2020. This indicates a modest recovery in asset efficiency from 2020 to 2024.
Overall, Toro Co's operating ROA has shown variability over the past five years, with some years exhibiting stronger asset utilization than others. A consistent analysis of operating ROA trends can provide insights into the company's operational efficiency and performance over time.