Toro Co (TTC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 533,300 | 518,849 | 351,677 | 382,873 | 430,700 | 486,563 | 668,683 | 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 |
| Long-term debt | US$ in thousands | 911,800 | 966,600 | 1,003,300 | 1,179,800 | 1,031,500 | 1,061,300 | 1,041,200 | 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 |
| 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 |
| Return on total capital | 21.65% | 19.93% | 13.25% | 14.04% | 16.94% | 19.17% | 25.71% | 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% |
October 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $533,300K ÷ ($911,800K + $1,551,900K)
= 21.65%
Toro Co's return on total capital has fluctuated over the recent quarters, with the highest return recorded at 29.64% in July 2021 and the lowest at 13.25% in May 2024. The return on total capital has generally been above 20% in most periods, indicating that the company has been able to generate strong returns on the capital employed in its operations.
The highest returns were seen in the earlier periods (January 2021 to July 2021), with a peak of 29.64%. However, the return has slightly decreased in more recent periods, with the October 2024 figure at 21.65%.
Overall, Toro Co's return on total capital demonstrates a solid performance, reflecting the company's efficiency in generating profits relative to the total capital invested. It is essential for investors and analysts to monitor these ratios over time to understand the company's ability to generate returns and assess its financial health.