Toro Co (TTC)

Debt-to-capital ratio

		Feb 2, 2024	Oct 31, 2023	Aug 4, 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	Oct 31, 2019	Aug 2, 2019	May 3, 2019	Feb 1, 2019
Long-term debt	US$ in thousands	1,179,800	1,031,500	1,061,310	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	620,899	620,804	721,079	312,551
Total stockholders’ equity	US$ in thousands	1,547,900	1,510,900	1,477,080	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	859,578	843,822	805,277	694,397
Debt-to-capital ratio		0.43	0.41	0.42	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	0.42	0.42	0.47	0.31

February 2, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,179,800K ÷ ($1,179,800K + $1,547,900K)
= 0.43

The debt-to-capital ratio for Toro Co. has been relatively stable over the past eight quarters, ranging from 0.40 to 0.47. This ratio indicates the proportion of the company's capital structure that is financed by debt. A decreasing trend in the ratio would suggest a reduction in the company's reliance on debt financing, which could be seen as a positive sign of improved financial health and lower risk. Conversely, an increasing trend could indicate higher leverage and potential financial risk.

Overall, the average debt-to-capital ratio over the periods analyzed is 0.43, with minor fluctuations within this range. The consistency in the ratio suggests that Toro Co. has maintained a balanced mix of debt and equity in its capital structure. Further analysis and comparison with industry benchmarks would provide additional insights into the company's leverage position and financial stability.