Toro Co (TTC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 300,504 | 362,316 | 430,815 | 620,464 | 575,663 | 499,411 | 458,302 | 468,441 | 518,280 | 540,724 | 538,082 | 487,396 | 440,226 | 395,715 | 356,657 | 370,501 | 350,968 | 341,871 | 354,526 | 380,925 |
| Long-term debt | US$ in thousands | 1,179,800 | 1,031,500 | 1,061,310 | 1,091,000 | 990,800 | 990,616 | 990,970 | 991,354 | 691,242 | 587,345 | 591,496 | 691,356 | 691,250 | 782,036 | 790,908 | 601,016 | 620,899 | 620,804 | 721,079 | 312,551 |
| 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 |
| Return on total capital | 11.02% | 14.25% | 16.97% | 24.47% | 24.57% | 21.93% | 20.70% | 22.19% | 28.13% | 29.64% | 29.55% | 26.05% | 24.37% | 21.55% | 20.08% | 24.49% | 23.71% | 23.34% | 23.23% | 37.83% |
February 2, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $300,504K ÷ ($1,179,800K + $1,547,900K)
= 11.02%
Toro Co.'s return on total capital has shown a generally positive trend over the past few quarters. The return on total capital has fluctuated between 19.53% and 25.71% in the previous eight quarters, with the highest return occurring in Q2 2023 at 25.71%. This indicates that the company has been effectively generating profits relative to the total capital employed in its operations.
The trend suggests that Toro Co. has been efficiently utilizing its capital to generate returns for its shareholders. Although there was a slight decrease in Q1 2024 compared to the previous quarter, the return remains healthy at 19.53%.
Overall, the return on total capital for Toro Co. is relatively stable, indicating that the company is effectively managing its capital structure and generating satisfactory returns on its investments.