DR Horton Inc (DHI)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	25,312,800	22,696,200	19,396,300	14,886,500	11,840,000
Debt-to-capital ratio		0.12	0.12	0.13	0.13	0.13

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,500,000K ÷ ($3,500,000K + $25,312,800K)
= 0.12

The debt-to-capital ratio of DR Horton Inc has remained relatively stable over the past five years, ranging from 0.12 to 0.13. This ratio indicates the proportion of the company's total debt in relation to its total capital, which includes both debt and equity.

A lower debt-to-capital ratio generally signifies lower financial risk, as it suggests that the company relies more on equity financing rather than debt financing. In this case, DR Horton Inc's consistent ratio over the years suggests a conservative approach to managing its debt levels relative to its capital structure.

Maintaining a stable debt-to-capital ratio can be seen as a positive sign of financial stability and prudent financial management. However, further analysis of the company's capital structure and overall financial health would be necessary to gain a more holistic perspective on its leverage and risk management strategies.