Toro Co (TTC)
Return on equity (ROE)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 418,900 | 329,700 | 443,300 | 409,880 | 329,701 |
| Total stockholders’ equity | US$ in thousands | 1,551,900 | 1,510,900 | 1,351,700 | 1,151,130 | 1,114,830 |
| ROE | 26.99% | 21.82% | 32.80% | 35.61% | 29.57% |
October 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $418,900K ÷ $1,551,900K
= 26.99%
The return on equity (ROE) of Toro Co has fluctuated over the past five years. In 2024, the ROE was 26.99%, showing an increase from the previous year's 21.82%. This improvement suggests that the company's ability to generate profit from shareholders' equity has strengthened. However, when compared to the higher ROE values of 32.80% in 2022 and 35.61% in 2021, the recent ROE is relatively lower. The downward trend from 2021 to 2024 could indicate challenges in sustaining higher profitability levels relative to equity. Further analysis would be needed to understand the factors driving these changes and to assess the company's overall financial health and performance.