Toro Co (TTC)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.37	0.37	0.38	0.43	0.41	0.42	0.40	0.43	0.42	0.44	0.45	0.47	0.38	0.32	0.32	0.37	0.38	0.43	0.45	0.40

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 some fluctuations over the past few years, ranging from 0.32 to 0.47. The ratio indicates the proportion of debt in the company's capital structure. A higher ratio suggests a greater reliance on debt financing, which can increase financial risk but also potentially enhance returns.

From the data provided, we can observe that the company's debt-to-capital ratio has generally been in the range of 0.32 to 0.47, with some variations over time. The ratio was relatively stable around 0.42 in the recent quarters, indicating a consistent balance between debt and equity in the company's capital structure.

It is important to consider the industry norms and benchmarks to fully evaluate Toro Co's debt-to-capital ratio and assess whether the company's current leverage position is optimal or requires adjustment. Overall, the trend and magnitude of changes in the ratio can provide insights into the company's financial health and risk profile.