Earnings quality remains a concern as the OCF/NI ratio fluctuated from a negative 0.92 in 2025Q1 to a high of 4.29 in 2025Q4, highlighting sensitivity to seasonal inventory shifts.
The Toro Company (TTC) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Cash from Operations | 789.3M | 662M | 569.9M | 306.8M | 297.2M | 555.5M | 539.37M | 337.37M | 364.81M | 360.75M | 384.29M | 249.59M | 182.37M | 221.88M | 185.8M | 113.88M | 193.51M | 251.47M | 215.72M | 183.57M | 190.27M | 174.08M | 185.15M | 118.63M | 145.51M | 70.19M | 105.55M | 61.6M | 69.1M | 83.9M | 32.4M |
| Operating CF Margin % | - | 14.68% | 12.43% | 6.74% | 6.58% | 14.03% | 15.96% | 10.75% | 13.93% | 14.4% | 16.06% | 10.44% | 8.39% | 10.87% | 9.49% | 6.04% | 11.45% | 16.51% | 11.49% | 9.78% | 10.36% | 9.67% | 11.2% | 7.93% | 10.4% | 5.19% | 7.88% | 4.81% | 6.22% | 7.98% | 3.48% |
| Operating CF Growth % | 220.76% | 16.16% | 85.76% | 3.23% | -46.5% | 2.99% | 59.88% | -7.52% | 1.12% | -6.12% | 53.97% | 36.86% | -17.81% | 19.42% | 63.16% | -41.15% | -23.05% | 16.57% | 17.51% | -3.52% | 9.3% | -5.98% | 56.08% | -18.47% | 107.3% | -33.5% | 71.35% | -10.85% | -17.64% | 158.95% | 109.03% |
| Net Income | 363.3M | 316.1M | 418.9M | 329.7M | 443.3M | 409.9M | 329.7M | 273.98M | 271.94M | 267.72M | 230.99M | 201.59M | 173.87M | 154.84M | 129.54M | 117.66M | 93.24M | 62.84M | 119.65M | 142.44M | 129.15M | 114.08M | 102.67M | 81.62M | 35.32M | 50.45M | 45.28M | 35.1M | 4.1M | 36.5M | 36.4M |
| Depreciation & Amortization | 145.5M | 142.9M | 128.2M | 119.2M | 108.8M | 99.3M | 95.61M | 87.7M | 61.28M | 64.99M | 64.1M | 63.14M | 53.14M | 54.13M | 53.63M | 48.51M | 0 | 44.53M | 48.19M | 42.1M | 42.56M | 42.83M | 36.09M | 34.14M | 30.88M | 37.17M | 38.15M | 39.1M | 38.2M | 30.9M | 18.2M |
| Stock-Based Compensation | 21.9M | 19M | 23M | 19.4M | 22.1M | 21.8M | 15.41M | 13.43M | 12.16M | 13.52M | 10.64M | 10.84M | 11.29M | 10.24M | 9.5M | 8.53M | 6.44M | 4.12M | 5.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -72.6M | -58.7M | -27.9M | -47.9M | -12.3M | -22.9M | 2.27M | -6.19M | 25.25M | -6.89M | 10.07M | 200K | -4.7M | 149K | -206K | -2.01M | 2.94M | 4.69M | -5.47M | -522K | -2.74M | -8.63M | 2.76M | 137K | 917K | 6.71M | 171K | -7M | 1.2M | 2.1M | 800K |
| Other Non-Cash Items | 230.5M | 95M | -1.5M | 139.8M | -18.8M | -400K | 8.85M | 44.12M | -1.41M | -1.71M | -204K | -4.22M | -7.23M | -7.09M | -6.13M | -5.8M | 42.33M | 118K | 550K | 7.46M | 8.09M | 10.54M | 9.7M | 9.71M | 29.34M | 6.71M | 4.56M | 700K | 1.4M | 3.1M | 1.1M |
| Working Capital Changes | 100.7M | 147.7M | 29.2M | -253.4M | -245.9M | 47.8M | 87.53M | -75.67M | -4.42M | 23.12M | 68.69M | -21.96M | -44M | 9.6M | -546K | -53.01M | 48.56M | 135.17M | 47.11M | -7.91M | 13.21M | 15.26M | 33.94M | -6.98M | 49.06M | -30.84M | 17.38M | -6.3M | 24.2M | 11.3M | -24.1M |
| Change in Receivables | -16.3M | 83.2M | -53.1M | -71.6M | -19.3M | -52.3M | 15.21M | -11.04M | -10.37M | -17.7M | 15.79M | -25.65M | -5.04M | -11.91M | -495K | -2.91M | -80K | 126.72M | 14.77M | 9.03M | 75K | 7.38M | -10.72M | -27.95M | 14.53M | -15.54M | -989K | -23.1M | 26.4M | 15.1M | -40.8M |
| Change in Inventory | 192.9M | 109.3M | 27.5M | -26.7M | -285.9M | -98.3M | 20.96M | -104.83M | -29.77M | -15.61M | 23.19M | -52.66M | -37.18M | 9.37M | -21.97M | -25.67M | -9.92M | 40.04M | 29.95M | -1.92M | -522K | -1.21M | -310K | 3.75M | 12.36M | -25.88M | 18.54M | -12.6M | -12.8M | 1.4M | 15.6M |
| Change in Payables | 62.2M | -86.6M | 24.3M | -149.9M | 66.3M | 139.3M | 39.54M | 30.46M | 47.46M | 59.86M | 30.61M | 56.95M | 1.47M | 18.96M | 28.66M | -17.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -276.5M | -77.4M | -59.7M | -157.7M | -548.3M | -128.5M | -216.08M | -772.94M | -127.92M | -83.76M | -48.91M | -254.52M | -65.7M | -44.77M | -47.32M | -69.28M | -60.81M | -45.96M | -51.56M | -50.29M | -38.06M | -68.42M | -38.3M | -40.48M | -44.42M | -44.76M | -44.37M | -37.2M | -48M | -166.7M | -21.7M |
| Capital Expenditures | -77.8M | -83.7M | -103.5M | -149.5M | -143.5M | -104M | -78.07M | -92.88M | -90.12M | -58.28M | -50.72M | -56.37M | -71.14M | -49.43M | -43.24M | -57.45M | -48.7M | -37.94M | -48.91M | -42.17M | -39.88M | -38.19M | -40.81M | -43.27M | -45.61M | -35.66M | -39.93M | -29.8M | -51.1M | -37M | -21.4M |
| CapEx % of Revenue | 1.64% | 1.86% | 2.26% | 3.28% | 3.18% | 2.63% | 2.31% | 2.96% | 3.44% | 2.33% | 2.12% | 2.36% | 3.27% | 2.42% | 2.21% | 3.05% | 2.88% | 2.49% | 2.6% | 2.25% | 2.17% | 2.12% | 2.47% | 2.89% | 3.26% | 2.64% | 2.98% | 2.33% | 4.6% | 3.52% | 2.3% |
| Acquisitions | -4.2M | 9.7M | 40M | -15.7M | -397.8M | 1.7M | -138.22M | -684.73M | -37.95M | -25.68M | 1.5M | -198.33M | 4.96M | 4.24M | -4.57M | -12.12M | -9.66M | -6.4M | -3.38M | -9.88M | 0 | -35.28M | 0 | -1.24M | 0 | -8.55M | -3.01M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -194.5M | -3.4M | 3.8M | 7.5M | -7M | -26.2M | 216K | 4.67M | 151K | 199K | 310K | 179K | 479K | 413K | 491K | 293K | 1.21M | 2.19M | 986K | 1.76M | 2.19M | 5.05M | 2.52M | 4.03M | 1.19M | -549K | -1.42M | -7.4M | 3.1M | -129.7M | -300K |
| Cash from Financing | -410.9M | -446.1M | -505.1M | -147.5M | 42.2M | -503.7M | 2.35M | 299.5M | -252.07M | -245.27M | -182.93M | -181.82M | 17.02M | -118.3M | -93.04M | -140.1M | -142.29M | -121.31M | -124.06M | -128.79M | -138.2M | -154.39M | -166.22M | -30.77M | -51.1M | -13.32M | -68.33M | -11.3M | -19.5M | 87.3M | -17.7M |
| Debt Issued (Net) | 90M | 0 | -110M | 40M | 300M | -100M | 90M | 389M | -19.76M | -19.14M | -25.27M | -7.23M | 149.06M | -2.15M | -2.78M | -2.63M | -2.87M | -5.75M | 1.39M | 46.48M | -51K | -819K | -4.87M | -14.96M | -33.86M | 19.33M | -50.11M | 19.2M | -13.8M | 122M | -15.9M |
| Equity Issued (Net) | -346.4M | -287.9M | -236.4M | -40.3M | -140M | -302.3M | 0 | -20.04M | -160.44M | -159.35M | -109.99M | -105.96M | -103.04M | -99.59M | -93.39M | -129.96M | -135.78M | -115.28M | -110.36M | -169.59M | -135.86M | -142.82M | -155.51M | -9.8M | -11.21M | -26.87M | -12.78M | -25.1M | 500K | 400K | -8.8M |
| Dividends Paid | -150.1M | -151.1M | -149.5M | -141.9M | -125.7M | -112.4M | -107.7M | -96.13M | -85.03M | -75.76M | -65.89M | -55.55M | -45.05M | -32.5M | -26.23M | -24.97M | -23.72M | -21.4M | -22.61M | -19.46M | -15.42M | -10.76M | -5.84M | -6M | -6.03M | -6.11M | -6.09M | -6.1M | -6.2M | -5.8M | -5.8M |
| Share Repurchases | -386.1M | -290M | -245.5M | -60M | -140M | -302.3M | 0 | -20.04M | -160.44M | -159.35M | -109.99M | -105.96M | -103.04M | -99.59M | -93.39M | -129.96M | -135.78M | -115.28M | -110.36M | -182.84M | -146.54M | -156.97M | -169.82M | -18.73M | -24.16M | -44.15M | -17.06M | -29.2M | -1.7M | -8M | -13.4M |
| Other Financing | -4.4M | -7.1M | -9.2M | -5.3M | 7.9M | 11M | 20.05M | 26.67M | 13.15M | 8.98M | 18.21M | 8.2M | 16.05M | 15.94M | 29.36M | 17.45M | 20.08M | 21.13M | 7.52M | 13.78M | 13.13M | 0 | 0 | 0 | 0 | 326K | 648K | 700K | 0 | -29.3M | 12.8M |
| Net Change in Cash | 106.3M | 141.5M | 6.4M | 4.9M | -217.4M | -74.3M | 328.06M | -137.3M | -21.13M | 36.7M | 147.28M | -188.6M | 131.88M | 57.14M | 44.97M | -96.48M | -10.41M | 88.41M | 37.31M | 6.52M | 14.12M | -49.35M | -19.53M | 47.47M | 49.94M | 11.9M | -10.98M | 11.9M | 100K | -100K | -7.7M |
| Free Cash Flow | 711.5M | 578.3M | 466.4M | 157.3M | 153.7M | 451.5M | 461.31M | 244.49M | 274.68M | 302.47M | 333.56M | 193.22M | 111.23M | 172.45M | 142.56M | 56.43M | 144.81M | 213.53M | 166.81M | 141.41M | 150.39M | 135.89M | 144.34M | 75.36M | 99.9M | 34.53M | 65.62M | 31.8M | 18M | 46.9M | 11M |
| FCF Margin % | 14.97% | 12.82% | 10.17% | 3.45% | 3.4% | 11.4% | 13.65% | 7.79% | 10.49% | 12.07% | 13.94% | 8.08% | 5.12% | 8.45% | 7.28% | 3% | 8.57% | 14.02% | 8.88% | 7.53% | 8.19% | 7.55% | 8.73% | 5.04% | 7.14% | 2.55% | 4.9% | 2.48% | 1.62% | 4.46% | 1.18% |
| FCF Growth % | 44.58% | 23.99% | 196.5% | 2.34% | -65.96% | -2.13% | 88.68% | -10.99% | -9.19% | -9.32% | 72.64% | 73.72% | -35.5% | 20.97% | 152.62% | -61.03% | -32.18% | 28.01% | 17.96% | -5.97% | 10.66% | -5.85% | 91.53% | -24.56% | 189.31% | -47.38% | 106.35% | 76.67% | -61.62% | 326.36% | 186.61% |
| FCF per Share | 7.44 | 5.79 | 4.47 | 1.49 | 1.45 | 4.16 | 4.25 | 2.26 | 2.53 | 2.72 | 2.98 | 1.70 | 0.97 | 1.46 | 1.18 | 0.44 | 1.08 | 1.47 | 1.08 | 0.84 | 0.85 | 0.73 | 0.71 | 0.36 | 0.48 | 0.17 | 0.31 | 0.15 | 0.09 | 0.24 | 0.05 |
| FCF Conversion (FCF/Net Income) | 1.96x | 2.09x | 1.36x | 0.93x | 0.67x | 1.36x | 1.64x | 1.23x | 1.34x | 1.35x | 1.66x | 1.24x | 1.05x | 1.43x | 1.43x | 0.97x | 2.08x | 4.00x | 1.80x | 1.29x | 1.47x | 1.53x | 1.80x | 1.45x | 4.12x | 1.39x | 2.33x | 1.75x | 16.85x | 2.41x | 0.89x |
| Interest Paid | 62.5M | 62.5M | 63M | 61.1M | 30.5M | 31.6M | 34.11M | 30.17M | 19.98M | 19.46M | 19.88M | 18.13M | 16.93M | 17.05M | 17.15M | 17.12M | 17.28M | 17.72M | 19.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 106.4M | 106.4M | 91.7M | 165.2M | 120.5M | 101.8M | 69.52M | 54.74M | 75.81M | 97.06M | 82.22M | 77.04M | 76.33M | 76.19M | 58.71M | 60.3M | 28.57M | 29.8M | 55.85M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying TTC stock.
The Toro Company (TTC) generated $662.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
The Toro Company (TTC) generated $578.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
The Toro Company (TTC) spent $83.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, The Toro Company (TTC) returned $151.1M to shareholders via cash dividends and spent $290.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Cyclical Dealer Inventory Overhang
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Volatility
According to the company's reported financial statements, the OCF/NI ratio has fluctuated wildly, ranging from a negative 0.92 in 2025Q1 to a high of 4.29 in 2025Q4, indicating that net income is a poor proxy for the actual cash-generating capacity of the underlying business operations.
The extreme variance in the conversion of net income to operating cash flow suggests that accrual-based accounting significantly obscures the timing of cash inflows. Investors should monitor whether these swings are driven by seasonal inventory build-ups or aggressive revenue recognition practices that pull forward future demand.
Working Capital Swings Drive Instability
As reported in recent quarterly filings, working capital changes have been highly erratic, swinging from a $199.5 million outflow in 2024Q1 to a $244.5 million inflow in 2025Q4, which highlights the company's sensitivity to inventory management and dealer-level demand fluctuations.
These dramatic shifts in working capital suggest that the company's cash flow is heavily dependent on the timing of dealer shipments and the subsequent liquidation of inventory. The reliance on sell-in revenue recognition appears to create significant cash flow volatility that may not reflect true end-market demand.
Capital Intensity Remains Relatively Modest
Based on the provided financial data, TTC has maintained a disciplined capital expenditure profile, with the CapEx/Revenue ratio consistently hovering between 1.1% and 3.7% over the last ten quarters, suggesting a focus on asset-light maintenance rather than aggressive capacity expansion.
The relatively low capital intensity indicates that the company is not currently burdened by massive infrastructure requirements, which may provide some flexibility during cyclical downturns. However, investors should monitor whether this level of investment is sufficient to support the transition to battery-electric platforms without sacrificing long-term competitiveness.
Aggressive Capital Return Amidst Uncertainty
As evidenced by the company's recent cash flow statements, TTC has prioritized shareholder returns, deploying over $200 million in share repurchases in 2026Q2 alone, even as operating cash flow remains subject to significant seasonal and cyclical volatility.
The commitment to share buybacks and dividends appears to be a core pillar of management's capital allocation strategy, yet it warrants investigation given the inconsistent cash flow generation. Relying on debt or cash reserves to fund these returns during periods of negative working capital changes may limit future strategic flexibility.