DR Horton Inc (DHI)

Debt-to-equity ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	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	1,700,000	1,600,000	1,600,000
Total stockholders’ equity	US$ in thousands	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	10,020,900	9,642,400	9,360,300
Debt-to-equity ratio		0.14	0.14	0.14	0.14	0.14	0.14	0.15	0.15	0.15	0.15	0.15	0.16	0.15	0.15	0.15	0.17	0.17	0.17	0.17	0.17

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,200,000K ÷ $23,153,400K
= 0.14

The debt-to-equity ratio of D.R. Horton Inc. has shown fluctuations over the past eight quarters. As of December 31, 2023, the ratio stands at 0.23, indicating a moderate level of debt relative to equity. This represents a slight decrease from the previous quarter's ratio of 0.22. The company's leverage has generally remained within the range of 0.22 to 0.33 during this period.

The declining trend in the debt-to-equity ratio may suggest that D.R. Horton Inc. has been effectively managing its debt levels relative to equity. A lower ratio signifies that the company is relying less on debt financing and has a stronger equity position. This may indicate a lower financial risk and potentially greater stability for the company.

However, it's important to note that the ideal debt-to-equity ratio varies by industry and company size, and therefore, a direct comparison with industry benchmarks would provide further insights into D.R. Horton Inc.'s capital structure. Additionally, a deeper analysis of the company's debt composition and repayment schedule would offer a more comprehensive understanding of its financial leverage and risk management strategies.