Toro Co (TTC)
Debt-to-equity 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-equity ratio | 0.68 | 0.73 | 0.60 | 0.62 | 0.72 |
October 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,031,500K ÷ $1,510,900K
= 0.68
The debt-to-equity ratio for Toro Co. has shown a fluctuating trend over the past five years. The ratio decreased from 0.82 in 2019 to 0.71 in 2020, indicating a reduction in debt relative to equity. This trend continued in 2021, as the ratio further decreased to 0.60, suggesting a more conservative financial structure with lower leverage.
However, in 2022, the debt-to-equity ratio increased to 0.73, indicating a higher proportion of debt relative to equity compared to the previous year. Moreover, in 2023, the ratio further increased to 0.68, continuing the upward trend observed in the previous year.
Overall, the fluctuation in the debt-to-equity ratio may reflect changes in the company's capital structure and borrowing patterns. A declining ratio suggests a lower reliance on debt financing, whereas an increasing ratio may indicate a higher proportion of debt in the company's capital structure. It is important to closely monitor this ratio to assess the company's financial risk and leverage over time.