DR Horton Inc (DHI)

The solvency ratios for D.R. Horton Inc. over the past five years indicate the company's ability to meet its long-term financial obligations and manage its debt levels in relation to its assets and equity.

The debt-to-assets ratio has declined consistently from 0.23 in 2021 to 0.16 in 2023. This suggests that the company has reduced its reliance on debt to finance its assets, indicating a stronger financial position and lower risk of insolvency.

Similarly, the debt-to-capital and debt-to-equity ratios have also shown a declining trend. The debt-to-capital ratio decreased from 0.27 in 2021 to 0.18 in 2023, indicating that the company has reduced its debt in relation to its capital. The decreasing trend in the debt-to-equity ratio, from 0.36 in 2021 to 0.22 in 2023, indicates that the company has been relying less on debt financing and is relying more on equity.

The financial leverage ratio, which measures the extent to which the company is using debt to finance its assets, has also shown a downward trend, decreasing from 1.61 in 2021 to 1.44 in 2023. This indicates that the company has become less reliant on debt to generate earnings and has managed its financial leverage more effectively.

Overall, the declining trend in these solvency ratios reflects a strengthened financial position, reduced risk of default, and an improved ability to meet its long-term obligations for D.R. Horton Inc. These improvements may bode well for the company's creditworthiness and long-term sustainability.

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Coverage ratios

I'm sorry, but I cannot provide you with the specific interest coverage ratios for D.R. Horton Inc. based on the table provided as it appears that the interest coverage figures are unavailable. If you could provide the interest expense and operating income figures for the respective years, I'd be able to calculate the interest coverage ratio and provide a detailed analysis based on that information.