Toro Co (TTC)
Return on equity (ROE)
| Feb 2, 2024 | Oct 31, 2023 | Aug 4, 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 | Oct 31, 2019 | Aug 2, 2019 | May 3, 2019 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 227,175 | 279,832 | 334,644 | 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 | 273,983 | 274,754 | 447,800 | 656,286 |
| Total stockholders’ equity | US$ in thousands | 1,547,900 | 1,510,900 | 1,477,080 | 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 | 859,578 | 843,822 | 805,277 | 694,397 |
| ROE | 14.68% | 18.52% | 22.66% | 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% | 31.87% | 32.56% | 55.61% | 94.51% |
February 2, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $227,175K ÷ $1,547,900K
= 14.68%
Toro Co.'s return on equity (ROE) has shown a general declining trend over the past few quarters, with Q2 2023 standing out as the highest at 33.29% and the most recent quarter, Q1 2024, being the lowest at 18.59%. This indicates a potential weakening in the company's ability to generate profits from its shareholders' equity.
The fluctuation in ROE may be attributed to various factors such as changes in the company's profitability, financial leverage, or asset management efficiency. A decreasing trend in ROE could signal declining profitability relative to the equity invested in the company.
It is important for Toro Co. to closely monitor and analyze the drivers behind these ROE fluctuations to identify opportunities for improvement and ensure sustainable performance in the long run. A thorough evaluation of the company's operations, financial structure, and strategic decisions may help in enhancing its return on equity and overall financial performance.