Toro Co (TTC)
Operating return on assets (Operating ROA)
| Feb 2, 2024 | Oct 31, 2023 | Aug 4, 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 | Oct 31, 2019 | Aug 2, 2019 | May 3, 2019 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 300,477 | 362,289 | 430,788 | 620,437 | 575,663 | 499,411 | 458,302 | 468,441 | 518,280 | 537,601 | 531,614 | 476,693 | 426,357 | 376,182 | 334,174 | 346,104 | 325,029 | 324,719 | 343,669 | 376,217 |
| Total assets | US$ in thousands | 3,801,100 | 3,644,300 | 3,585,890 | 3,654,900 | 3,556,000 | 3,439,950 | 3,479,310 | 3,253,040 | 2,936,140 | 2,968,050 | 2,996,110 | 2,875,140 | 2,853,230 | 2,813,860 | 2,811,480 | 2,491,610 | 2,330,550 | 2,309,730 | 2,466,000 | 1,622,810 |
| Operating ROA | 7.91% | 9.94% | 12.01% | 16.98% | 16.19% | 14.52% | 13.17% | 14.40% | 17.65% | 18.11% | 17.74% | 16.58% | 14.94% | 13.37% | 11.89% | 13.89% | 13.95% | 14.06% | 13.94% | 23.18% |
February 2, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $300,477K ÷ $3,801,100K
= 7.91%
To analyze the operating return on assets (operating ROA) of Toro Co., we look at the trend in the operating ROA over the past few quarters. The operating ROA measures the company's ability to generate operating profits from its assets.
From the data in the table, we observe a generally positive trend in operating ROA from Q2 2022 to Q3 2023, indicating an improvement in the company's operating efficiency and asset utilization. The operating ROA increased steadily from 14.52% in Q3 2022 to a peak of 17.87% in Q2 2023.
However, there was a slight decline in operating ROA in Q4 2023 and Q1 2024, which may raise some concerns about the company's ability to maintain or further improve its operating efficiency and asset utilization.
Overall, Toro Co. has demonstrated strong operating performance with operating ROA consistently above 13% in recent quarters. Investors and stakeholders should continue to monitor the company's operating ROA and assess whether the recent decline is a temporary fluctuation or a potential signal of future challenges in generating profits from its assets.