Green Brick Partners Inc (GRBK)

Financial leverage ratio

		Dec 31, 2024	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
Total assets	US$ in thousands	2,249,990	2,172,070	2,064,400	1,976,570	1,904,710	1,866,650	1,776,570	1,706,460	1,655,680	1,657,740	1,588,270	1,528,660	1,421,870	1,347,320	1,287,140	1,079,920	988,847	944,582	910,248	975,180
Total stockholders’ equity	US$ in thousands	1,625,420	1,520,740	1,439,240	1,383,330	1,300,700	1,245,220	1,174,080	1,114,150	1,061,910	1,009,240	947,391	912,183	874,548	766,789	717,389	666,131	640,242	610,079	575,759	542,982
Financial leverage ratio		1.38	1.43	1.43	1.43	1.46	1.50	1.51	1.53	1.56	1.64	1.68	1.68	1.63	1.76	1.79	1.62	1.54	1.55	1.58	1.80

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,249,990K ÷ $1,625,420K
= 1.38

The financial leverage ratio of Green Brick Partners Inc has exhibited a declining trend over the analyzed period, starting at 1.80 on March 31, 2020, and decreasing to 1.38 by December 31, 2024. This indicates that the company's level of financial leverage has been gradually decreasing, which may suggest a reduction in the firm's reliance on debt financing relative to its equity. A lower financial leverage ratio generally indicates a lower level of financial risk for the company, as it implies a smaller proportion of debt in the firm's capital structure compared to equity. However, it's important to note that a very low leverage ratio may also indicate underutilization of debt in capital structure, potentially missing out on the benefits of financial leveraging.