Topbuild Corp (BLD)

Financial leverage 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
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
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
Financial leverage ratio		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	2.26	2.25	2.26	2.31

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,162,850K ÷ $2,563,660K
= 2.01

The financial leverage ratio of TopBuild Corp has shown a declining trend over the past eight quarters, starting at 2.57 in Q1 2022 and reaching 2.01 in Q4 2023.

This indicates that the company has been gradually reducing its reliance on debt to finance its operations and growth. A decreasing financial leverage ratio generally suggests that the company's level of debt relative to its equity is decreasing, which can be viewed positively in terms of reducing financial risk and improving financial stability.

Overall, the trend in the financial leverage ratio for TopBuild Corp indicates a more conservative capital structure and a stronger financial position, as the company has been reducing its debt levels relative to its equity over the observed period.