Toro Co (TTC)
Debt-to-assets ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,031,500 | 990,800 | 691,242 | 691,250 | 620,899 |
| Total assets | US$ in thousands | 3,644,300 | 3,556,000 | 2,936,140 | 2,853,230 | 2,330,550 |
| Debt-to-assets ratio | 0.28 | 0.28 | 0.24 | 0.24 | 0.27 |
October 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,031,500K ÷ $3,644,300K
= 0.28
The debt-to-assets ratio for Toro Co. over the past five years has remained relatively stable, with values ranging from 0.24 to 0.30. This ratio indicates the proportion of the company's assets that are financed by debt. A lower ratio suggests lower financial risk, as it implies that a smaller portion of assets is funded by debt.
The consistent values between 0.28 and 0.30 in the most recent three years indicate that the company has maintained a relatively stable level of debt financing compared to its total assets. This stability in the debt-to-assets ratio suggests that Toro Co. has been managing its debt and asset levels effectively.
However, it would be beneficial to delve deeper into the composition and types of debt, as well as the nature of the company's assets, to gain a more comprehensive understanding of its financial leverage. Nonetheless, the stable trend in the debt-to-assets ratio provides a positive insight into Toro Co.'s financial risk management over the past five years.