DR Horton Inc (DHI)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	22,696,200	19,396,300	14,886,500	11,840,000	10,020,900
Debt-to-capital ratio		0.12	0.13	0.13	0.13	0.15

September 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,200,000K ÷ ($3,200,000K + $22,696,200K)
= 0.12

The debt-to-capital ratio for D.R. Horton Inc. has exhibited a decreasing trend over the past five years, signaling a more conservative capital structure. As of September 30, 2023, the company's debt-to-capital ratio stands at 0.18, indicating that 18% of the company's capital is financed through debt. This represents an improvement from the previous year's ratio of 0.24. The declining trend suggests that the company has been reducing its reliance on debt to fund its operations and expansions, potentially indicating a stronger financial position and lower financial risk. It is important to note that a lower debt-to-capital ratio generally signifies a lower risk for the company as it indicates a lower proportion of debt in its overall capital structure. This trend can be appealing to investors and creditors as it reflects prudent financial management.