Topbuild Corp (BLD)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,735,430 | 4,650,520 | 4,902,990 | 5,310,450 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,209,620 | 2,114,270 | 2,357,310 | 2,712,030 | 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 |
| Financial leverage ratio | 2.14 | 2.20 | 2.08 | 1.96 | 2.01 | 2.08 | 2.17 | 2.28 | 2.39 | 2.46 | 2.54 | 2.57 | 2.60 | 2.00 | 2.03 | 2.07 | 2.09 | 2.14 | 2.19 | 2.23 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,735,430K ÷ $2,209,620K
= 2.14
Topbuild Corp's financial leverage ratio has shown a declining trend from 2.23 as of March 31, 2020, to 1.96 as of March 31, 2024, indicating an improvement in the company's leverage position. However, there was a slight increase in the ratio to 2.08 as of June 30, 2024, followed by a subsequent decrease to 2.14 as of December 31, 2024. This suggests some fluctuation in the company's leverage over the period analyzed.
A financial leverage ratio of less than 1 indicates that the company is primarily using equity to finance its operations, while a ratio greater than 1 suggests a significant reliance on debt. Throughout the period, Topbuild Corp's ratio has consistently been above 1, indicating a reliance on debt to finance its operations.
It is important for investors and stakeholders to closely monitor changes in the financial leverage ratio, as high levels of debt can increase the company's financial risk and impact its ability to meet its obligations. The recent fluctuation in Topbuild Corp's financial leverage ratio may warrant further investigation into the company's debt management and overall financial health.