Topbuild Corp (BLD)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,373,030 | 1,417,260 | 1,454,480 | 683,396 | 697,955 |
| Total assets | US$ in thousands | 5,162,850 | 4,606,830 | 4,258,530 | 2,815,280 | 2,603,960 |
| Debt-to-assets ratio | 0.27 | 0.31 | 0.34 | 0.24 | 0.27 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,373,030K ÷ $5,162,850K
= 0.27
The debt-to-assets ratio of TopBuild Corp has shown fluctuations over the past five years. In 2023, the ratio decreased to 0.28 from 0.32 in 2022, indicating the company's ability to reduce its debt relative to its total assets. This reduction may suggest improved financial health and lower financial risk. However, it is worth noting that in 2021, the ratio was higher at 0.35, signaling a higher debt burden relative to assets. The ratio was at its lowest in 2020 at 0.25, showing a conservative debt management approach. Overall, the trend in the debt-to-assets ratio for TopBuild Corp indicates varying levels of leverage over the years, with the company potentially adjusting its capital structure to optimize financial stability and growth opportunities.