Century Communities Inc (CCS)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,386,940 | 2,150,220 | 1,764,510 | 1,280,700 | 1,061,700 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,386,940K
= 0.00
The debt-to-equity ratio of Century Communities Inc has been decreasing steadily over the past five years, indicating a positive trend in the company's capital structure. This ratio measures the proportion of debt that the company has relative to its equity, with lower values generally indicating lower financial risk.
In 2019, the company had a relatively high debt-to-equity ratio of 1.07, suggesting higher reliance on debt to finance its operations compared to equity. However, this ratio decreased to 0.90 in 2020, 0.75 in 2021, further dropping to 0.57 in 2022, and eventually reaching 0.55 in 2023. This trend suggests that the company has been reducing its debt levels or increasing its equity, or both, over the years.
A decreasing debt-to-equity ratio can be a positive sign for investors and creditors as it implies a stronger financial position and potentially lower financial risk. It indicates that the company is becoming less leveraged and is relying more on equity financing, which could provide more stability and flexibility in managing its financial obligations.
Peer comparison
Dec 31, 2023