Toro Co (TTC)
Debt-to-assets ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 911,800 | 1,031,500 | 990,800 | 691,242 | 691,250 |
| Total assets | US$ in thousands | 3,582,800 | 3,644,300 | 3,556,000 | 2,936,140 | 2,853,230 |
| Debt-to-assets ratio | 0.25 | 0.28 | 0.28 | 0.24 | 0.24 |
October 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $911,800K ÷ $3,582,800K
= 0.25
The debt-to-assets ratio for Toro Co has shown fluctuation over the past five years. In October 2024, the ratio decreased to 0.25 from 0.28 in the previous year, indicating a lower reliance on debt to fund its assets. This improvement may suggest a more conservative approach to financing, which could enhance the company's financial stability and reduce its financial risk. However, it is important to note that although the ratio has decreased from the prior year, it remains relatively consistent with the ratios observed in 2022 and 2020. Overall, a lower debt-to-assets ratio is generally viewed favorably by investors and creditors as it indicates a stronger financial position and lower risk of default.