Century Communities Inc (CCS)

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	4,532,470	4,780,960	4,331,440	4,111,580	4,139,360	3,949,390	3,856,650	3,712,980	3,773,770	3,880,060	3,772,740	3,495,500	3,496,880	3,210,870	2,894,250	2,951,680	2,845,090	2,591,360	2,551,780	2,910,440
Total stockholders’ equity	US$ in thousands	2,620,860	2,547,500	2,465,660	2,419,280	2,386,940	2,292,660	2,221,920	2,171,640	2,150,220	2,072,000	1,951,160	1,829,860	1,764,510	1,601,020	1,488,660	1,373,170	1,280,700	1,184,960	1,129,490	1,084,530
Financial leverage ratio		1.73	1.88	1.76	1.70	1.73	1.72	1.74	1.71	1.76	1.87	1.93	1.91	1.98	2.01	1.94	2.15	2.22	2.19	2.26	2.68

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,532,470K ÷ $2,620,860K
= 1.73

Century Communities Inc's financial leverage ratio has shown a declining trend over the past five years, starting at 2.68 in March 2020 and decreasing to 1.73 by December 2024. This indicates that the company has been progressively reducing its reliance on debt to finance its operations and investments. A decreasing trend in the financial leverage ratio is generally considered positive as it suggests that the company is becoming less leveraged and potentially less risky. However, it is important to note that a very low financial leverage ratio may also indicate underutilization of debt financing that could limit the company's growth opportunities. Overall, Century Communities Inc's decreasing financial leverage ratio reflects a strategic shift towards a more conservative capital structure.