Century Communities Inc (CCS)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.73 | 1.76 | 1.98 | 2.22 | 2.35 |
Solvency ratios provide insights into a company's long-term financial health and ability to meet its long-term obligations. Analyzing Century Communities Inc's solvency ratios over the past five years reveals the following trends:
1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. The decreasing trend from 0.46 in 2019 to 0.31 in 2023 indicates that Century Communities Inc has been reducing its reliance on debt to finance its assets, which is a positive sign for solvency.
2. Debt-to-capital ratio: This ratio shows the proportion of the company's capital that is financed by debt. Similar to the debt-to-assets ratio, the decreasing trend from 0.52 in 2019 to 0.35 in 2023 suggests that the company is becoming less dependent on debt for its capital structure.
3. Debt-to-equity ratio: This ratio compares the company's total debt to its shareholders' equity, indicating the extent to which a company is leveraged. The declining trend from 1.07 in 2019 to 0.55 in 2023 demonstrates that Century Communities Inc has been reducing its debt relative to equity, which is a positive indicator of improved financial health.
4. Financial leverage ratio: This ratio measures the extent to which the company is using debt to finance its assets. The decreasing trend from 2.35 in 2019 to 1.73 in 2023 signifies that the company has been reducing its financial leverage over the years, indicating a stronger solvency position.
In summary, the decreasing trends in Century Communities Inc's solvency ratios over the past five years suggest a positive shift towards a more conservative and sustainable capital structure, with lower reliance on debt for financing. This improvement in solvency ratios indicates a stronger financial position and enhanced capacity to meet its long-term obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 7.04 | 12.08 | 11.83 | 5.05 | 2.77 |
Since the interest coverage ratio data for Century Communities Inc is not available in the table provided for the years 2019 to 2023, it is not possible to perform a direct analysis of the company's ability to cover its interest expenses with its operating income. The interest coverage ratio is a key indicator of a company's financial health, showing its capacity to meet interest obligations.
To assess the interest coverage ratio for Century Communities Inc, you would need to have the operating income and interest expense figures for each of the years in question. The interest coverage ratio is calculated by dividing operating income by interest expense. A higher ratio indicates a better ability to cover interest costs and suggests lower financial risk.
Without the specific data values, it is challenging to provide a detailed analysis of Century Communities Inc's interest coverage performance over the years. However, it is recommended to gather the necessary financial information to calculate the interest coverage ratio and evaluate the company's financial position and risk management in relation to its interest obligations.