Green Brick Partners Inc (GRBK)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,902,830 | 1,655,680 | 1,421,870 | 988,847 | 875,539 |
| Total stockholders’ equity | US$ in thousands | 1,300,700 | 1,061,910 | 874,548 | 640,242 | 523,168 |
| Financial leverage ratio | 1.46 | 1.56 | 1.63 | 1.54 | 1.67 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,902,830K ÷ $1,300,700K
= 1.46
The financial leverage ratio of Green Brick Partners Inc has shown a decreasing trend from 2019 to 2023, indicating a reduction in the company's reliance on debt to finance its operations and investments. In 2019, the financial leverage ratio was at its highest at 1.67, suggesting a higher level of debt compared to equity in the capital structure.
However, the ratio gradually decreased to 1.46 in 2023, reflecting a lower proportion of debt relative to equity. This decline in the financial leverage ratio may indicate that the company has been paying off debt or increasing equity in its capital structure, which can improve financial stability and reduce financial risk.
A lower financial leverage ratio generally suggests a healthier financial position, as it indicates a lower level of financial leverage and potential vulnerability to economic downturns or changes in interest rates. Overall, the decreasing trend in Green Brick Partners Inc's financial leverage ratio over the years is a positive sign of improved financial health and risk management.
Peer comparison
Dec 31, 2023