Toro Co (TTC)
Return on total capital
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 533,300 | 459,200 | 588,284 | 528,477 | 440,226 |
| Long-term debt | US$ in thousands | 911,800 | 1,031,500 | 990,800 | 691,242 | 691,250 |
| Total stockholders’ equity | US$ in thousands | 1,551,900 | 1,510,900 | 1,351,700 | 1,151,130 | 1,114,830 |
| Return on total capital | 21.65% | 18.06% | 25.11% | 28.68% | 24.37% |
October 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $533,300K ÷ ($911,800K + $1,551,900K)
= 21.65%
Over the past five years, Toro Co's return on total capital has shown some fluctuations. The return on total capital was 21.65% in 2024, which is an improvement compared to the previous year's return of 18.06% in 2023. However, it is lower than the returns seen in 2021 and 2020, which were 28.68% and 24.37% respectively. In 2022, the return on total capital was 25.11%.
Overall, Toro Co's return on total capital has been relatively strong over the period, indicating that the company has been efficient in generating returns from its total capital. Investors and stakeholders may view this positively as it suggests that the company has been effectively utilizing its capital to generate profits.