Toro Co (TTC)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,551,900 | 1,510,900 | 1,351,700 | 1,151,130 | 1,114,830 |
| Debt-to-capital ratio | 0.37 | 0.41 | 0.42 | 0.38 | 0.38 |
October 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $911,800K ÷ ($911,800K + $1,551,900K)
= 0.37
The debt-to-capital ratio of Toro Co has shown a slight decrease over the last five years, from 0.42 in 2022 to 0.37 in 2024. This indicates that the company has been able to effectively manage its debt in relation to its capital structure. A decreasing trend in the debt-to-capital ratio suggests that Toro Co has been reducing its reliance on debt financing, which can be viewed positively by investors and creditors. Overall, the company's debt levels appear to be at a reasonable level, relative to its overall capital, signaling financial stability and sound management of debt obligations.