PulteGroup Inc (PHM)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.55 | 1.66 | 1.78 | 1.86 | 1.96 |
PulteGroup Inc's solvency ratios have displayed a consistent improvement over the past five years, indicating a strengthening financial position and reduced reliance on debt. The Debt-to-assets ratio has decreased from 0.29 in 2019 to 0.15 in 2023, reflecting a declining level of debt relative to total assets. Similarly, the Debt-to-capital ratio has shown a downward trend, decreasing from 0.37 in 2019 to 0.19 in 2023, suggesting a lower proportion of debt in the company's capital structure.
Moreover, the Debt-to-equity ratio has exhibited a notable decline from 0.58 in 2019 to 0.24 in 2023, implying that the company is relying less on debt funding relative to its equity. The Financial leverage ratio has also improved, decreasing from 1.96 in 2019 to 1.55 in 2023, indicating a reduced level of financial leverage and increased equity financing.
Overall, the consistent decline in these solvency ratios signifies PulteGroup Inc's efforts to strengthen its financial position, reduce debt obligations, and enhance its solvency and ability to meet its long-term financial commitments.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 7,355.52 | 12,112.11 | 5,000.70 | 407.94 | 2,294.79 |
Unfortunately, without the specific data for interest expenses and earnings before interest and taxes (EBIT) for each year provided in the table, an analysis of PulteGroup Inc's interest coverage ratio cannot be conducted. The interest coverage ratio is a key financial metric that indicates a company's ability to meet its interest payment obligations based on its earnings. A higher interest coverage ratio suggests a stronger ability to cover interest expenses with operating income, reflecting a lower financial risk for the company. Conversely, a lower interest coverage ratio may indicate a higher financial risk due to potential difficulties in meeting interest obligations. To assess PulteGroup Inc's financial health and risk profile accurately, the specific interest expenses and EBIT figures for each year would be required.