Toll Brothers's Days Sales Outstanding for the
three
months ended in Apr. 2026 was 19.51.
Toll Brothers's Days Inventory for the
three
months ended in Apr. 2026 was 533.59.
Toll Brothers's Days Payable for the
three
months ended in Apr. 2026 was 23.57.
Therefore, Toll Brothers's Cash Conversion Cycle (CCC) for the
three
months ended in Apr. 2026 was 529.53.
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Toll Brothers Cash Conversion Cycle Related Terms
Toll Brothers Cash Conversion Cycle Historical Data
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The historical data trend for Toll Brothers's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:TLK vs NVR, LEN, TMHC: Cash Conversion Cycle Comparison
For the Residential Construction subindustry, Toll Brothers's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Toll Brothers Cash Conversion Cycle vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Toll Brothers's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Toll Brothers's Cash Conversion Cycle for the fiscal year that ended in Oct. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Toll Brothers (FRA:TLK) has a Cash Conversion Cycle of 529.53 as of Apr. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Toll Brothers and its competitors.
Is Toll Brothers' Cash Conversion Cycle too high?
Toll Brothers' current Cash Conversion Cycle is 529.53. The Homebuilding & Construction industry median Cash Conversion Cycle is 273.39. Toll Brothers' value of 529.53 is 93.7% above this industry median. Overall, Toll Brothers has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toll Brothers' Cash Conversion Cycle compare to NVR and LEN?
Toll Brothers' Cash Conversion Cycle of 529.53 can be compared against companies in the Homebuilding & Construction industry. The industry median Cash Conversion Cycle is 273.39. Toll Brothers' value of 529.53 is 93.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Homebuilding & Construction company?
The median Cash Conversion Cycle among Homebuilding & Construction companies is 273.39, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Toll Brothers's current Cash Conversion Cycle of 529.53 is 93.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Toll Brothers and its competitors. For the Homebuilding & Construction industry, the median Cash Conversion Cycle is 273.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toll Brothers's current Cash Conversion Cycle is 529.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toll Brothers stock overvalued right now?
Based on GuruFocus' analysis, Toll Brothers (FRA:TLK) is currently considered Modestly Overvalued. The stock's GF Value™ is €119.71, compared to a current price of €144.20 — trading 20.5% above its estimated fair value. The current Cash Conversion Cycle is 529.53 and 93.7% above the Homebuilding & Construction industry median of 273.39. Toll Brothers' overall GF Score™ is 93/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Toll Brothers (FRA:TLK), the current Cash Conversion Cycle is 529.53 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Toll Brothers (FRA:TLK) Overvalued in 2026?
Based on GuruFocus' analysis, Toll Brothers stock appears to be overvalued.
The current stock price of €144.20 is trading 20.5% above its estimated GF Value™ of €119.71.
GuruFocus considers Toll Brothers to be Modestly Overvalued.
Key valuation signals for FRA:TLK:
Cash Conversion Cycle: 529.53
GF Value™: €119.71 vs. price of €144.20 (20.5% above fair value)
Industry Position: 93.7% above the Homebuilding & Construction median
No single metric tells the full story. See the FRA:TLK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in over 60 markets across 24 states and caters to move-up, active-adult, and second-homebuyers. Toll Brothers consistently ranks as a top 10 builder within the US according to total home closings. Traditional homebuilding operations represent most of the company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the US It has its headquarters in Horsham, Pennsylvania.
93GF Score
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