DR Horton Inc (DHI)

Debt-to-equity 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-equity ratio		0.14	0.14	0.13	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

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 stable debt-to-equity ratio over the past few quarters, ranging from 0.13 to 0.17. The ratio indicates that the company has been utilizing a conservative amount of debt relative to its equity to finance its operations and growth. A lower debt-to-equity ratio generally suggests lower financial risk and greater financial stability. DR Horton's consistent ratio around 0.14 to 0.15 implies a balanced capital structure, with a moderate level of leverage compared to equity. This can be seen as a positive sign of financial health, as it shows a prudent approach to managing the company's capital structure. Overall, the steady debt-to-equity ratio of DR Horton Inc reflects a cautious approach to leveraging its operations, which may contribute to sustainable growth and stability.