Toro Co (TTC)
Pretax margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 400,500 | 552,546 | 499,818 | 407,070 | 322,133 |
| Revenue | US$ in thousands | 4,494,500 | 4,478,920 | 3,930,920 | 3,347,690 | 3,110,320 |
| Pretax margin | 8.91% | 12.34% | 12.72% | 12.16% | 10.36% |
October 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $400,500K ÷ $4,494,500K
= 8.91%
The pretax margin of Toro Co. has shown some fluctuations over the past five years. In 2023, the pretax margin decreased to 8.80% from 12.24% in the previous year. This decrease indicates a lower profit margin before accounting for taxes, which may be a result of increased operating expenses or other factors affecting the company's profitability. While the pretax margin in 2023 is lower compared to the previous year, it is important to assess the company's overall financial performance and consider other financial ratios in order to gain a comprehensive understanding of its profitability and efficiency.