Toro Co (TTC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,551,900 | 1,636,400 | 1,651,400 | 1,547,900 | 1,510,900 | 1,477,100 | 1,560,000 | 1,444,200 | 1,351,700 | 1,286,600 | 1,223,520 | 1,119,550 | 1,151,130 | 1,237,180 | 1,229,420 | 1,179,720 | 1,114,830 | 1,054,030 | 984,950 | 912,050 |
| ROE | 26.99% | 24.40% | 16.05% | 18.59% | 21.83% | 25.52% | 33.15% | 33.29% | 32.80% | 29.99% | 29.18% | 32.88% | 35.61% | 34.11% | 33.72% | 31.44% | 29.57% | 28.06% | 27.15% | 31.20% |
October 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $418,900K ÷ $1,551,900K
= 26.99%
The return on equity (ROE) for Toro Co has shown fluctuation over the past few years, ranging from a low of 16.05% in May 2024 to a high of 35.61% in Jan 2022. Overall, the company's ROE has been relatively strong, with an average ROE of approximately 29.97% over the past five years.
The company's ROE peaked in the first quarter of 2022 at 35.61%, indicating that the company was generating $0.3561 in profit for every dollar of shareholder equity. This suggests that the company was effectively utilizing its shareholders' equity to generate profits during this period.
However, the ROE decreased slightly in the following quarters but remained above 30% until the third quarter of 2023. The ROE then fell to 21.83% in Oct 2023 before rebounding to 26.99% in Oct 2024. This recent improvement in ROE may indicate that the company is becoming more efficient in generating profits using its equity.
Overall, Toro Co's ROE performance reflects a strong profitability trend, with the company consistently generating solid returns for its shareholders. This indicates that the company is effectively leveraging its equity to generate profits and create value for its shareholders.