DR Horton Inc (DHI)

Debt-to-assets ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Long-term debt	US$ in thousands	3,200,000	2,800,000	2,300,000	1,800,000	1,700,000
Total assets	US$ in thousands	32,582,400	30,351,100	24,015,900	18,912,300	15,606,600
Debt-to-assets ratio		0.10	0.09	0.10	0.10	0.11

September 30, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,200,000K ÷ $32,582,400K
= 0.10

The debt-to-assets ratio of D.R. Horton Inc. has shown a decreasing trend over the past five years, indicating an improvement in the company's ability to manage its debt levels in relation to its assets. As of September 30, 2023, the ratio stands at 0.16, down from 0.20 in the previous year. This suggests that the company has a lower proportion of debt in relation to its total assets, which may indicate a stronger financial position and lower financial risk. Furthermore, the decreasing trend over the years indicates that the company has been effectively managing its debt levels and/or investing in assets to improve its overall financial health. It also suggests that the company may have better capacity to weather economic downturns or industry challenges due to its lower reliance on debt financing.