Toll Brothers (NYSE:TOL) Gross Margin %

: 24.54% (As of Jan. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Toll Brothers's Gross Profit for the three months ended in Jan. 2023 was $437 Mil. Toll Brothers's Revenue for the three months ended in Jan. 2023 was $1,780 Mil. Therefore, Toll Brothers's Gross Margin % for the quarter that ended in Jan. 2023 was 24.54%.

The historical rank and industry rank for Toll Brothers's Gross Margin % or its related term are showing as below:

TOL' s Gross Margin % Range Over the Past 10 Years
Min: 19.84 Med: 21.57 Max: 24.2
Current: 25.24

During the past 13 years, the highest Gross Margin % of Toll Brothers was 24.20%. The lowest was 19.84%. And the median was 21.57%.

TOL's Gross Margin % is ranked better than
57.14% of 105 companies
in the Homebuilding & Construction industry
Industry Median: 23.22 vs TOL: 25.24

Toll Brothers had a gross margin of 24.54% for the quarter that ended in Jan. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Toll Brothers was 1.30% per year.

Toll Brothers Gross Margin % Historical Data

The historical data trend for Toll Brothers's Gross Margin % 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.

* Premium members only.

Toll Brothers Annual Data

Trend

Oct13

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Gross Margin %

22.49

21.60

20.03

22.10

24.20

Toll Brothers Quarterly Data
	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23
Gross Margin %																23.06	23.83	25.99	24.54	26.06

Competitive Comparison

For the Residential Construction subindustry, Toll Brothers's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.

Annual Data Quarterly Data

Toll Brothers Gross Margin % Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Toll Brothers's Gross Margin % falls in comparison to its industry or sector. The grey bar indicates the Gross Margin %'s extreme value range as defined by GuruFocus.

Toll Brothers Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Toll Brothers's Gross Margin for the fiscal year that ended in Oct. 2022 is calculated as

Gross Margin % (A: Oct. 2022 )	=	Gross Profit (A: Oct. 2022 )	/	Revenue (A: Oct. 2022 )
	=	2486.4	/	10275.558
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(10275.558 - 7789.179)	/	10275.558
	=	24.20 %

Toll Brothers's Gross Margin for the quarter that ended in Jan. 2023 is calculated as

Gross Margin % (Q: Jan. 2023 )	=	Gross Profit (Q: Jan. 2023 )	/	Revenue (Q: Jan. 2023 )
	=	436.8	/	1780.169
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1780.169 - 1343.358)	/	1780.169
	=	24.54 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Toll Brothers (NYSE:TOL) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Toll Brothers had a gross margin of 24.54% for the quarter that ended in Jan. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Toll Brothers Gross Margin % Related Terms

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Toll Brothers (NYSE:TOL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Toll Brothers Inc (NYSE:TOL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

TLK:Germany

Address

1140 Virginia Drive, Fort Washington, PA, USA, 19034

Website

https://www.tollbrothers.com

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-home buyers. Traditional homebuilding operations represent most of company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the U.S. It has its headquarters in Horsham, Pennsylvania.

Executives

Derek T. Kan	director	TOLL BROTHERS, INC., 1140 VIRGINIA DRIVE, FORT WASHINGTON PA 19034
Scott D Stowell	director
Stephen F. East	director	TOLL BROTHERS, INC., 1140 VIRGINIA DRIVE, FORT WASHINGTON PA 19034
Robert Parahus	officer: EVP,Co-Chief Operating Officer	TOLL BROTHERS, INC., 1140 VIRGINIA DRIVE, FORT WASHINGTON PA 19034
James W. Boyd	officer: EVP,Co-Chief Operating Officer	TOLL BROTHERS, INC., 1140 VIRGINIA DRIVE, FORT WASHINGTON PA 19034
John K. Mcdonald	officer: SVP, General Counsel	TOLL BROTHERS, INC., 250 GIBRALTAR ROAD, HORSHAM PA 19044
Karen H. Grimes	director	TOLL BROTHERS, INC., 1140 VIRGINIA DRIVE, FORT WASHINGTON PA 19034
Wendell E. Pritchett	director	TOLL BROTHERS, INC., 1140 VIRGINIA DRIVE, FORT WASHINGTON PA 19034
Michael J. Grubb	officer: Chief Accounting Officer	TOLL BROTHERS, INC., 1140 VIRGINIA DRIVE, FORT WASHINGTON PA 19034
John A Mclean	director	TOLL BROTHERS, INC., 1140 GIBRALTAR ROAD, FORT WASHINGTON PA 19034
Richard T. Hartman	officer: Chief Operating Officer	250 GIBRALTAR ROAD, HORSHAM PA 19044
Martin P. Connor	officer: Chief Financial Officer	1140 VIRGINIA DRIVE, FORT WASHINGTON PA 19034
Yearley Douglas C. Jr.	officer: Executive Vice President	250 GIBRALTAR ROAD, HORSHAM PA 19044
Christine Garvey	director	14100 E 35TH PLACE, AURORA CO 80011
Edward G Boehne	director	313 DEVON STATE ST, DEVON PA 19333