Topbuild Corp (BLD)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	2,563,660	2,407,830	2,238,050	2,065,140	1,929,710	1,834,440	1,742,660	1,697,240	1,636,430	1,561,710	1,474,820	1,396,360	1,348,790	1,281,590	1,217,650	1,179,820	1,152,890	1,165,210	1,141,650	1,102,850
Debt-to-capital ratio		0.35	0.36	0.38	0.41	0.42	0.44	0.45	0.46	0.47	0.30	0.32	0.33	0.34	0.35	0.36	0.37	0.38	0.38	0.38	0.39

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,373,030K ÷ ($1,373,030K + $2,563,660K)
= 0.35

The debt-to-capital ratio of TopBuild Corp has been showing a declining trend over the past eight quarters. The ratio, which measures the proportion of the company's capital that is financed by debt, decreased from 0.47 in Q1 2022 to 0.36 in Q4 2023. This indicates that TopBuild Corp has been reducing its reliance on debt financing relative to its total capital.

A decreasing debt-to-capital ratio is generally considered positive as it signifies a lower financial risk and better financial health for the company. It suggests that TopBuild Corp may be managing its debt levels effectively and improving its capital structure over time.

It is important for investors and stakeholders to continue monitoring this ratio along with other financial metrics to assess the company's overall financial stability and soundness.