Toro Co (TTC)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,510,900 | 1,351,700 | 1,151,130 | 1,114,830 | 859,578 |
| Debt-to-capital ratio | 0.41 | 0.42 | 0.38 | 0.38 | 0.42 |
October 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,031,500K ÷ ($1,031,500K + $1,510,900K)
= 0.41
The debt-to-capital ratio of Toro Co. has exhibited fluctuations over the past five years, indicating changes in the company's capital structure and leverage. The ratio decreased from 0.45 in October 2019 to 0.38 in October 2021, suggesting a reduction in the proportion of debt relative to total capital during this period. However, it subsequently increased to 0.42 in both October 2022 and October 2020, signaling a potential increase in leverage or a shift in the capital mix towards more debt. In the latest period, as of October 2023, the ratio stands at 0.41, showing a slight increase compared to the previous year. This trend indicates that Toro Co. has maintained a significant portion of its capital structure funded by debt in recent years, albeit with some variability. Further analysis of the company's financial position and management of debt levels would be necessary to fully assess the implications of these changes in the debt-to-capital ratio.