Topbuild Corp (BLD)

Debt-to-equity 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-equity ratio		0.54	0.57	0.62	0.68	0.73	0.78	0.82	0.85	0.89	0.43	0.46	0.49	0.51	0.54	0.57	0.59	0.61	0.60	0.62	0.64

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,373,030K ÷ $2,563,660K
= 0.54

TopBuild Corp's debt-to-equity ratio has been gradually decreasing over the last eight quarters, indicating a positive trend in the company's financial leverage. The ratio was 0.88 in Q1 2022 and has declined to 0.56 in Q4 2023. This suggests that the company has been reducing its reliance on debt to finance its operations and investments, while also improving its equity position.

A lower debt-to-equity ratio generally indicates a lower financial risk for the company, as it shows a healthier balance between debt and equity financing. TopBuild Corp's decreasing ratio could imply that the company is effectively managing its debt levels and potentially strengthening its balance sheet over time.

It is important to note that the debt-to-equity ratio should be analyzed in conjunction with other financial ratios and metrics to gain a comprehensive understanding of TopBuild Corp's overall financial health and performance.