DR Horton Inc (DHI)

Debt-to-capital ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	3,500,000	3,400,000	3,200,000	3,200,000	3,200,000	3,000,000	2,900,000	2,900,000	2,800,000	2,700,000	2,500,000	2,400,000	2,300,000	2,100,000	2,100,000	1,900,000	1,800,000	1,700,000	1,800,000	1,700,000
Total stockholders’ equity	US$ in thousands	25,312,800	24,656,500	23,815,500	23,153,400	22,696,200	21,656,400	20,712,700	20,153,300	19,396,300	18,062,500	16,774,900	15,677,700	14,886,500	13,802,900	12,963,100	12,485,200	11,840,000	11,048,000	10,458,000	10,227,400
Debt-to-capital ratio		0.12	0.12	0.12	0.12	0.12	0.12	0.12	0.13	0.13	0.13	0.13	0.13	0.13	0.13	0.14	0.13	0.13	0.13	0.15	0.14

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 few quarters, ranging between 0.12 to 0.15. This indicates that the company has been maintaining a conservative approach towards its capital structure, with a higher proportion of its capital being sourced from equity rather than debt. A lower debt-to-capital ratio typically suggests lower financial risk and greater financial stability for the company, as it indicates a lower reliance on debt financing. However, it's important to note that the company's debt-to-capital ratio has seen a slight increase in recent quarters, moving from 0.12 to 0.15, which may indicate a slightly higher level of debt in relation to its total capital. Overall, further analysis of the company's debt levels and capacity to service its debt obligations would be necessary to provide a more comprehensive assessment of its financial health.