Toro Co (TTC)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,582,800 | 3,731,400 | 3,852,200 | 3,801,100 | 3,644,300 | 3,585,900 | 3,741,400 | 3,654,900 | 3,556,000 | 3,439,950 | 3,479,310 | 3,253,040 | 2,936,140 | 2,968,050 | 2,996,110 | 2,875,140 | 2,853,230 | 2,813,860 | 2,811,480 | 2,491,610 |
| 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 |
| Financial leverage ratio | 2.31 | 2.28 | 2.33 | 2.46 | 2.41 | 2.43 | 2.40 | 2.53 | 2.63 | 2.67 | 2.84 | 2.91 | 2.55 | 2.40 | 2.44 | 2.44 | 2.56 | 2.67 | 2.85 | 2.73 |
October 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,582,800K ÷ $1,551,900K
= 2.31
The financial leverage ratio of Toro Co has shown fluctuations over the past few years, ranging from 2.28 to 2.91. The ratio peaked at 2.91 on February 2, 2023, indicating higher financial risk due to increased reliance on debt to finance assets. However, there has been a general trend of decreasing leverage since then, with the ratio gradually declining to 2.31 on October 31, 2024.
Overall, Toro Co's financial leverage ratio has demonstrated some volatility but has generally been within a relatively narrow range. It is important for the company to carefully manage its debt levels to maintain a healthy balance between debt and equity financing and to mitigate excessive financial risk.