Toll Brothers (STU:TLK) Inventory Turnover : 0.15 (As of Jan. 2024)

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What is Toll Brothers Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Toll Brothers's Cost of Goods Sold for the three months ended in Jan. 2024 was €1,294 Mil. Toll Brothers's Average Total Inventories for the quarter that ended in Jan. 2024 was €8,687 Mil. Toll Brothers's Inventory Turnover for the quarter that ended in Jan. 2024 was 0.15.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Toll Brothers's Days Inventory for the three months ended in Jan. 2024 was 612.65.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Toll Brothers's Inventory-to-Revenue for the quarter that ended in Jan. 2024 was 4.86.

Toll Brothers Inventory Turnover Historical Data

The historical data trend for Toll Brothers's Inventory Turnover 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.

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Toll Brothers Inventory Turnover Chart

Toll Brothers Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Inventory Turnover

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0.75

0.71

0.89

1.01

0.80

Toll Brothers Quarterly Data
	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24
Inventory Turnover	Get a 7-Day Free Trial															0.20	0.21	0.25	0.15	0.20

Toll Brothers Inventory Turnover Calculation

Toll Brothers's Inventory Turnover for the fiscal year that ended in Oct. 2023 is calculated as

	Inventory Turnover (A: Oct. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Oct. 2023 )	/ (	(Total Inventories (A: Oct. 2022 )	+	Total Inventories (A: Oct. 2023 ))	/	count )
=	6970.617	/ (	(8864.326	+	8577.526)	/	2 )
=	6970.617	/	8720.926
=	0.80

Toll Brothers's Inventory Turnover for the quarter that ended in Jan. 2024 is calculated as

	Inventory Turnover (Q: Jan. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jan. 2024 )	/ (	(Total Inventories (Q: Oct. 2023 )	+	Total Inventories (Q: Jan. 2024 ))	/	count )
=	1293.817	/ (	(8577.526	+	8795.8)	/	2 )
=	1293.817	/	8686.663
=	0.15

Toll Brothers (STU:TLK) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Toll Brothers's Days Inventory for the three months ended in Jan. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jan. 2024 )	/	Cost of Goods Sold (Q: Jan. 2024 )	*	Days in Period
	=	8686.663	/	1293.817	*	365 / 4
	=	612.65

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Toll Brothers's Inventory to Revenue for the quarter that ended in Jan. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	8686.663	/	1788.124
	=	4.86

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Toll Brothers Inventory Turnover Related Terms

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Toll Brothers (STU:TLK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Toll Brothers Inc (STU:TLK) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

TOL:USA 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.