Topbuild Corp (BLD)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,327,160 | 1,373,030 | 1,417,260 | 1,454,480 | 683,396 |
| Total stockholders’ equity | US$ in thousands | 2,209,620 | 2,563,660 | 1,929,710 | 1,636,430 | 1,348,790 |
| Debt-to-capital ratio | 0.38 | 0.35 | 0.42 | 0.47 | 0.34 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,327,160K ÷ ($1,327,160K + $2,209,620K)
= 0.38
The debt-to-capital ratio of Topbuild Corp has shown some fluctuations over the past five years. As of December 31, 2020, the ratio was 0.34, indicating that debt accounted for 34% of the company's total capital. This ratio increased to 0.47 by December 31, 2021, suggesting a higher reliance on debt financing relative to total capital.
However, in the following years, there were some improvements in the debt-to-capital ratio. By December 31, 2022, the ratio had decreased to 0.42, showing a reduction in the proportion of debt in the company's capital structure. The ratio further declined to 0.35 by December 31, 2023, indicating a more favorable balance between debt and capital.
As of the latest available data on December 31, 2024, the debt-to-capital ratio stood at 0.38. This suggests that debt accounted for 38% of the company's total capital at that point in time.
Overall, the trend in the debt-to-capital ratio of Topbuild Corp demonstrates varying levels of leverage over the years, with the company making adjustments to its capital structure to maintain an optimal balance between debt and equity financing.