Green Brick Partners Inc (GRBK)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.38 | 1.46 | 1.56 | 1.63 | 1.54 |
Green Brick Partners Inc has maintained a strong solvency position over the past five years, as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which stand at 0.00 throughout the period from December 31, 2020, to December 31, 2024. This signifies that the company relies very little on debt to finance its operations compared to its total assets, capital, and equity.
Furthermore, the financial leverage ratio has shown a decreasing trend from 1.54 in 2020 to 1.38 in 2024. A lower financial leverage ratio indicates that the company is relying less on debt to fund its operations and is in a stronger financial position. Green Brick Partners Inc's decreasing financial leverage ratio over the years suggests a decreasing dependency on debt financing, which may enhance the company's solvency and financial stability. Overall, the company's solvency ratios demonstrate a prudent and conservative approach to financial management.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 20.34 | 12.82 | 6.27 |
Green Brick Partners Inc has shown a consistent improvement in its interest coverage ratio over the past few years. The interest coverage ratio has increased steadily from 6.27 in December 2020 to 12.82 in December 2021, further improving to 20.34 in December 2022. This indicates that the company's operating income is more than sufficient to cover its interest expenses, reflecting a strong ability to meet its financial obligations. However, the data is not provided for the years 2023 and 2024, so it is unclear how the interest coverage ratio may evolve in the future. Overall, the trend in the interest coverage ratio for Green Brick Partners Inc shows a positive financial performance and indicates a healthy financial position.