Toro Co (TTC)
Return on assets (ROA)
| Oct 31, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Oct 31, 2023 | Aug 4, 2023 | May 5, 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 418,900 | 399,338 | 265,075 | 287,775 | 329,775 | 376,994 | 517,107 | 480,732 | 443,342 | 385,893 | 357,063 | 368,109 | 409,880 | 421,968 | 414,616 | 370,891 | 329,701 | 295,771 | 267,410 | 284,534 |
| Total assets | US$ in thousands | 3,582,800 | 3,731,400 | 3,852,200 | 3,801,100 | 3,644,300 | 3,585,900 | 3,741,400 | 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 |
| ROA | 11.69% | 10.70% | 6.88% | 7.57% | 9.05% | 10.51% | 13.82% | 13.15% | 12.47% | 11.22% | 10.26% | 11.32% | 13.96% | 14.22% | 13.84% | 12.90% | 11.56% | 10.51% | 9.51% | 11.42% |
October 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $418,900K ÷ $3,582,800K
= 11.69%
The return on assets (ROA) for Toro Co has fluctuated over the periods provided. The ROA measures the efficiency with which the company is utilizing its assets to generate profits.
The ROA for Toro Co ranged from a low of 6.88% in May 3, 2024, to a high of 14.22% in Jul 30, 2021. Generally, a higher ROA indicates that the company is more efficient in using its assets to generate earnings.
The downward trend in ROA from the peak in May 5, 2023 (13.82%) to the low in May 3, 2024 (6.88%) may suggest a decrease in profitability relative to the size of its asset base during that period. However, the subsequent increase in ROA to 11.69% in October 31, 2024, indicates an improvement in asset utilization and profitability.
It is important for Toro Co to monitor its ROA consistently to ensure that it is effectively managing its assets to generate optimal returns for its stakeholders. Overall, the company's ROA performance varies over time, reflecting changes in its asset efficiency and profitability levels.