DR Horton Inc (DHI)

Debt-to-equity 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-equity ratio		0.14	0.14	0.14	0.15	0.15

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,500,000K ÷ $25,312,800K
= 0.14

DR Horton Inc has maintained a relatively consistent debt-to-equity ratio over the five-year period, ranging from 0.14 to 0.15. A debt-to-equity ratio below 1 indicates that the company's debt levels are relatively low compared to its equity, suggesting that it relies more on equity financing than debt financing. This is generally seen as a positive sign, indicating lower financial risk and potential for higher returns on equity for shareholders. The stability of the debt-to-equity ratio over the years suggests that DR Horton Inc has been managing its debt and equity levels effectively to maintain a healthy balance sheet structure.