Green Brick Partners Inc (GRBK)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,300,700 | 1,061,910 | 874,548 | 640,242 | 523,168 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,300,700K)
= 0.00
Based on the data provided, Green Brick Partners Inc's debt-to-capital ratio has shown a declining trend over the past five years. The ratio decreased from 0.31 in 2019 to 0.21 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments relative to its total capital structure.
A lower debt-to-capital ratio suggests that Green Brick Partners Inc has a more conservative capital structure, with a larger portion of its financing coming from equity rather than debt. This can be viewed positively as it may lower the company's financial risk and improve its financial stability. Additionally, a lower debt-to-capital ratio may also indicate that the company has better access to capital markets or has been able to generate sufficient internal cash flows to fund its activities.
Overall, the decreasing trend in Green Brick Partners Inc's debt-to-capital ratio reflects a potentially healthier financial position and a more sustainable capital structure over the years. However, it is important for investors to consider other financial metrics and factors in conjunction with the debt-to-capital ratio to form a comprehensive analysis of the company's financial health and performance.
Peer comparison
Dec 31, 2023