The Toro Co (The Toro Co) Debt-to-EBITDA

: 2.59 (As of Jan. 2024)

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Debt-to-EBITDA measures a company's ability to pay off its debt.

The Toro Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $26 Mil. The Toro Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $1,288 Mil. The Toro Co's annualized EBITDA for the quarter that ended in Jan. 2024 was $508 Mil. The Toro Co's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 was 2.59.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for The Toro Co's Debt-to-EBITDA or its related term are showing as below:

TTC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.69 Med: 1.18 Max: 2.47
Current: 2.47

During the past 13 years, the highest Debt-to-EBITDA Ratio of The Toro Co was 2.47. The lowest was 0.69. And the median was 1.18.

TTC's Debt-to-EBITDA is ranked worse than
60.69% of 2302 companies
in the Industrial Products industry
Industry Median: 1.705 vs TTC: 2.47

The Toro Co Debt-to-EBITDA Historical Data

The historical data trend for The Toro Co's Debt-to-EBITDA 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.

The Toro Co Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Debt-to-EBITDA

1.60

1.63

1.21

1.54

2.01

The Toro Co Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Debt-to-EBITDA																1.68	1.10	21.59	2.11	2.59

Competitive Comparison

For the Tools & Accessories subindustry, The Toro Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.

The Toro Co Debt-to-EBITDA Distribution

For the Industrial Products industry and Industrials sector, The Toro Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where The Toro Co's Debt-to-EBITDA falls into.

The Toro Co Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

The Toro Co's Debt-to-EBITDA for the fiscal year that ended in Oct. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(19.5	+	1143.6)	/	578.4
	=	2.01

The Toro Co's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(25.6	+	1288.2)	/	508
	=	2.59

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jan. 2024) EBITDA data.

The Toro Co (NYSE:TTC) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The Toro Co Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of The Toro Co's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

The Toro Co (The Toro Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » The Toro Co (NYSE:TTC) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

TO2:Germany

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.

Executives

Gregory S Janey	officer: VP, RLC	8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Janet Katherine Cooper	director	8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Kurt D Svendsen	officer: VP, Information Services	8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Kevin N Carpenter	officer: VP, Global Ops & Supply Chain	8111 LYNDALE AVE S, BLOOMINGTON MN 55420
Edric C Funk	officer: Group VP, Golf, Grounds & Irr	8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Jason P Baab	officer: VP, Strategy, Corp Dev & Sust	8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Daryn A Walters	officer: VP, Exmark	8111 LYNDALE AVE S, BLOOMINGTON MN 55420
Joanna M. Totsky	officer: VP, GC & Corp Secretary	40300 TRADITIONS DRIVE, NORTHVILLE MI 48168
Richard W Rodier	officer: Section 16	8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Gary Lee Ellis	director	THE TORO COMPANY, 8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Jody M Christy	officer: Vice President, BOSS	8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Renee J Peterson	officer: VP, Finance & CFO	8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Blake M Grams	officer: mging dir., corp. controller	8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Richard M Olson	officer: VP, Exmark	8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Amy E Dahl	officer: VP, Human Resources	8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420