Century Communities Inc (CCS)

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	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	2,499,970	2,489,560	2,410,370	2,323,060
Total stockholders’ equity	US$ in thousands	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	1,061,700	951,179	897,229	875,406
Financial leverage ratio		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	2.35	2.62	2.69	2.65

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,139,360K ÷ $2,386,940K
= 1.73

Century Communities Inc's financial leverage ratio has fluctuated over the past eight quarters, ranging from a low of 1.71 in Q1 2023 to a high of 1.93 in Q2 2022. The financial leverage ratio indicates the company's reliance on debt financing to support its operations and growth.

The downward trend in the financial leverage ratio from Q2 2022 to Q1 2023 suggests that the company may be reducing its debt levels relative to its equity, which can positively impact its financial stability and creditworthiness.

However, the ratio increased slightly in Q4 2023 compared to the previous quarter, indicating a potential increase in leverage. This could be a strategy to fund growth opportunities or manage working capital needs.

Overall, Century Communities Inc's financial leverage ratio hovers around the mid-1.70s to low 1.90s range, indicating a moderate level of debt usage compared to equity. It is essential for the company to closely monitor and manage its leverage ratio to ensure it maintains a healthy balance of debt and equity in its capital structure.