DR Horton Inc (DHI)

Solvency ratios

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
Debt-to-assets ratio 0.10 0.10 0.09 0.10 0.10 0.09 0.09 0.10 0.09 0.09 0.09 0.10 0.10 0.10 0.10 0.10 0.10 0.09 0.11 0.10
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
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
Financial leverage ratio 1.43 1.43 1.44 1.44 1.44 1.49 1.50 1.50 1.56 1.60 1.59 1.59 1.61 1.58 1.63 1.58 1.60 1.63 1.64 1.60

DR Horton Inc's solvency ratios indicate a stable financial position over the past few quarters. The debt-to-assets ratio has been consistently around 0.09 to 0.11, suggesting that the company maintains a low level of debt relative to its total assets. The debt-to-capital ratio and debt-to-equity ratio have also remained relatively steady, ranging from 0.12 to 0.15 and 0.13 to 0.17, respectively. These ratios show that the company relies moderately on debt to finance its operations and projects.

The financial leverage ratio, which reflects the proportion of total assets funded by debt, has fluctuated slightly but generally remained within the range of 1.43 to 1.64. This indicates that DR Horton Inc has been effectively managing its debt levels in relation to its equity and assets. Overall, the company's solvency ratios suggest a balanced capital structure and a prudent approach to managing its financial obligations.

Coverage ratios

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
Interest coverage 31.46 34.24 33.66 32.25 31.79 32.08 37.17 43.82 47.72 49.48 45.10 40.03 36.09 30.97 26.85 23.34 20.41 18.38 17.34 16.53

Over the past several quarters, DR Horton Inc's interest coverage ratio has been consistently high, indicating a strong ability to meet its interest payment obligations. The interest coverage ratio has shown a generally increasing trend, reaching a peak of 49.48 in the second quarter of 2022 before gradually declining. Despite the slight decrease in recent periods, the company's interest coverage remains well above 1, signifying that DR Horton Inc generates more than enough operating income to cover its interest expenses. This high level of interest coverage suggests that the company is financially stable and has a low risk of defaulting on its debt obligations.