Toll Brothers, Inc. key statistics and ratios

In fiscal 2025, Toll Brothers, Inc. had return on equity of 16.9%, an operating margin of 15.7% and debt equal to 3.0% of equity. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Toll Brothers, Inc.: financial ratios, annual
Fiscal year	2017Oct 2017	2018Oct 2018	2019Oct 2019	2020Oct 2020	2021Oct 2021	2022Oct 2022	2023Oct 2023	2024Oct 2024	2025Oct 2025	LTMJul 2026
Gross margin	21.5%	22.5%	21.6%	20.0%	22.1%	24.2%	26.4%	27.9%	25.1%	23.7%
Operating margin	11.1%	11.0%	9.4%	7.8%	11.6%	14.7%	17.3%	18.8%	15.7%	13.8%
Net margin	9.2%	10.5%	8.2%	6.3%	9.5%	12.5%	13.7%	14.5%	12.3%	11.1%
Free-cash-flow margin	14.3%	7.8%	4.9%	12.7%	14.1%	8.9%	11.9%	8.6%	9.4%	10.1%
Return on equity	11.8%	16.1%	12.0%	9.0%	16.4%	22.8%	21.4%	21.7%	16.9%	14.3%
Return on assets	5.7%	7.6%	5.6%	4.1%	7.4%	10.8%	11.1%	12.1%	9.7%	8.2%
Asset turnover	0.62	0.73	0.69	0.65	0.78	0.86	0.81	0.84	0.79	0.74
Debt to equity	3.1%	3.2%	6.2%	7.2%	6.9%	8.9%	7.6%	5.7%	3.0%	—
SG&A as % of revenue	10.4%	11.5%	12.2%	12.3%	10.5%	9.5%	9.1%	9.1%	9.4%	9.9%
Capital spending as % of revenue	0.5%	0.4%	1.2%	1.5%	0.8%	0.7%	0.7%	0.7%	0.8%	0.9%
Free cash flow ÷ net income	155.5%	74.8%	59.4%	201.2%	148.3%	71.1%	87.0%	59.6%	76.2%	91.0%
Dividends ÷ net income	7.2%	8.2%	10.8%	12.7%	9.2%	6.9%	6.6%	5.9%	7.2%	8.1%
Dividends and buybacks ÷ free cash flow	39.6%	100.9%	84.7%	76.9%	36.8%	69.0%	54.7%	76.9%	72.9%	71.4%

US$ thousands unless shown otherwise. Fiscal quarters.

Toll Brothers, Inc.: financial ratios, quarterly
Quarter	2024 Q4Oct 2024	2025 Q1Jan 2025	2025 Q2Apr 2025	2025 Q3Jul 2025	2025 Q4Oct 2025	2026 Q1Jan 2026	2026 Q2Apr 2026	2026 Q3Jul 2026
Gross margin	26.4%	24.7%	25.8%	25.2%	24.8%	22.2%	23.9%	23.5%
Operating margin	18.3%	11.8%	16.4%	16.6%	16.5%	10.2%	13.7%	13.5%
Net margin	14.3%	9.6%	12.9%	12.6%	13.0%	9.8%	10.3%	10.5%
Free-cash-flow margin	19.9%	−23.6%	12.7%	11.7%	22.6%	−0.5%	4.3%	8.3%
SG&A as % of revenue	8.1%	12.9%	9.3%	8.6%	8.3%	12.0%	10.2%	10.0%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

0 of 0 checks passed · July 31, 2026

Short-term assets cover short-term liabilities The company doesn't report a short-term split. Not assessable.
Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
More cash than debt Cash or debt not separately reported. Not assessable.
Debt below 40% of shareholders' equity Equity or debt not reported. Not assessable.
Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
A year's operating cash flow covers at least 20% of debt Cash flow or debt not reported. Not assessable.
Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Toll Brothers, Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

65 /100

Moderate moat

How hard Toll Brothers's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 11 / 20

Net income has been a median 7.4% of total assets over 10 years.
Pricing power 9 / 20

Gross margin has been a median 23.4%, moving by 2.2 percentage points (standard deviation) across 8 years.
Durability 11 / 20

Operating margin has been a median 13.5%; its worst year was 7.4%.
Cash conversion 14 / 20

Free cash flow was positive in 8 of 8 years, at a median 8.4% of revenue.
Discipline 20 / 20

The diluted share count fell 24.4% over five years; stock-based pay has been a median 0.3% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Toll Brothers, Inc.'s SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Toll Brothers, Inc.