Topbuild Corp (BLD)

Debt-to-assets ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	1,373,030	1,383,720	1,394,790	1,405,930	1,417,260	1,428,940	1,437,100	1,445,470	1,454,480	675,567	680,999	686,493	683,396	688,870	694,320	699,750	697,955	701,955	705,626	709,172
Total assets	US$ in thousands	5,162,850	5,014,090	4,857,950	4,700,910	4,606,830	4,506,120	4,420,980	4,361,560	4,258,530	3,120,690	2,998,720	2,892,100	2,815,280	2,747,800	2,670,580	2,631,840	2,603,960	2,624,120	2,581,120	2,542,830
Debt-to-assets ratio		0.27	0.28	0.29	0.30	0.31	0.32	0.33	0.33	0.34	0.22	0.23	0.24	0.24	0.25	0.26	0.27	0.27	0.27	0.27	0.28

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 been gradually increasing over the past eight quarters, starting at 0.28 in Q4 2022 and reaching 0.34 by Q1 2022. This indicates that the company has been relying more on debt financing in relation to its total assets during this period. A higher debt-to-assets ratio suggests that a larger portion of the company's assets is financed through debt rather than equity. While an increasing trend can signal potential financial risks due to higher leverage, it could also indicate that the company is strategically using debt to fund growth opportunities or capital expenditures. It is essential to monitor this ratio over time to assess the company's overall financial health and risk management strategies.