DR Horton Inc (DHI)

Debt-to-equity 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-equity ratio		0.14	0.14	0.15	0.15	0.17

September 30, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,200,000K ÷ $22,696,200K
= 0.14

The debt-to-equity ratio of D.R. Horton Inc. has shown a declining trend over the past five years, indicating a more conservative capital structure. The ratio decreased from 0.34 in 2019 to 0.22 in 2023, reflecting a lower level of debt relative to equity in the company's capital structure. This suggests that the company has been relying less on debt financing and has increased its equity financing or paid off existing debt. A lower debt-to-equity ratio generally indicates lower financial risk and a stronger financial position, as it signifies a lower reliance on borrowed funds. This trend may indicate that D.R. Horton Inc. has been managing its financial leverage prudently and improving its financial stability over the years.