Toro Co (TTC)
Return on equity (ROE)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 329,700 | 443,300 | 409,880 | 329,701 | 273,983 |
| Total stockholders’ equity | US$ in thousands | 1,510,900 | 1,351,700 | 1,151,130 | 1,114,830 | 859,578 |
| ROE | 21.82% | 32.80% | 35.61% | 29.57% | 31.87% |
October 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $329,700K ÷ $1,510,900K
= 21.82%
To analyze Toro Co.'s return on equity (ROE) over the past five years, we can observe the following trends:
1. There has been a declining trend in ROE from 35.61% in 2021 to 21.82% in 2023, indicating a decrease in the company's ability to generate profits from its shareholders' equity.
2. Although the ROE decreased in 2023, it is important to note that the company's ROE was relatively high in 2022 and 2021, at 32.80% and 35.61% respectively, reflecting a historically strong ability to generate profits from shareholders' equity.
3. Toro Co.'s ROE in 2020 and 2019 was 29.57% and 31.87% respectively, indicating a relatively stable performance in generating returns on shareholders' equity during those years.
4. It is important to investigate the factors contributing to the declining trend in ROE, as it may indicate a decrease in the company's efficiency in utilizing its equity to generate profits.
In summary, Toro Co.'s ROE has displayed variability over the past five years, with a declining trend from 2021 to 2023, suggesting a potential shift in the company's ability to generate profits from shareholders' equity. Further analysis of the company's financial performance and efficiency is recommended to understand the underlying factors driving these ROE movements.