The Toro Co (FRA:TO2) ROCE % : 22.75% (As of Jul. 2024)

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What is The Toro Co ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. The Toro Co's annualized ROCE % for the quarter that ended in Jul. 2024 was 22.75%.

The Toro Co ROCE % Historical Data

The historical data trend for The Toro Co's ROCE % 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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The Toro Co ROCE % Chart

The Toro Co Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

ROCE %

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27.28

23.98

26.63

28.08

17.11

The Toro Co Quarterly Data
	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24
ROCE %	Get a 7-Day Free Trial															-2.01	15.51	13.61	27.79	22.75

The Toro Co ROCE % Calculation

The Toro Co's annualized ROCE % for the fiscal year that ended in Oct. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	434.862	/	( ( (3609.34 - 1079.554)	+	(3451.152 - 898.324) )	/ 2 )
	=	434.862	/	( (2529.786	+	2552.828)	/ 2 )
	=	434.862	/	2541.307
	=	17.11 %

The Toro Co's ROCE % of for the quarter that ended in Jul. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jul. 2024 )		(Q: Apr. 2024 )		(Q: Jul. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jul. 2024 )		(Q: Apr. 2024 )		(Q: Jul. 2024 )
	=	585.284	/	( ( (3590.25 - 977.388)	+	(3440.351 - 907.617) )	/ 2 )
	=	585.284	/	( ( 2612.862	+	2532.734 )	/ 2 )
	=	585.284	/	2572.798
	=	22.75 %

(1) Note: The EBIT data used here is four times the quarterly (Jul. 2024) EBIT data.

The Toro Co (FRA:TO2) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

The Toro Co ROCE % Related Terms

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The Toro Co Business Description

Industry

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TTC:USA

Address

8111 Lyndale Avenue South, Bloomington, MN, USA, 55420-1196

Website

https://www.thetorocompany.com

The Toro Co manufactures turf maintenance and landscaping equipment. The company produces reel and rotary riding products, trim cutting and walking mowers, greens rollers, turf sprayer equipment, underground irrigation systems, heavy-duty walk-behind mowers, and sprinkler systems used for professional turf and landscape maintenance and construction. Its products are marketed through a network of distributors and dealers to predominantly professional users maintaining turfs and sports fields such as golf courses. Its operating segments are Professional which generates a substantial part of its revenue, and Residential segment. The company also produces snow plowers and ice management products. Its key revenue generating market is the United States.

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