DR Horton Inc (DHI)

Debt-to-assets ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	3,500,000	3,200,000	2,800,000	2,300,000	1,800,000
Total assets	US$ in thousands	36,104,300	32,582,400	30,351,100	24,015,900	18,912,300
Debt-to-assets ratio		0.10	0.10	0.09	0.10	0.10

September 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,500,000K ÷ $36,104,300K
= 0.10

The debt-to-assets ratio of DR Horton Inc has been relatively stable over the past five years, ranging between 0.09 and 0.10. This indicates that the company finances a small portion of its assets through debt, with the majority being funded by equity. A consistent debt-to-assets ratio at around 10% suggests that DR Horton Inc maintains a conservative capital structure and may have lower financial risk compared to companies with higher debt levels. It also suggests that the company has a strong ability to cover its debt obligations with its assets. Overall, the stable and low debt-to-assets ratio of DR Horton Inc signals financial stability and prudent financial management.