PulteGroup Inc (PHM)
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 | 1.43 | 1.55 | 1.66 | 1.78 | 1.86 |
PulteGroup Inc has consistently maintained a strong solvency position as evidenced by its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 throughout the five-year period from 2020 to 2024. This indicates that the company has effectively financed its assets with equity rather than debt.
Furthermore, the Financial leverage ratio has shown a declining trend from 1.86 in 2020 to 1.43 in 2024. A decreasing financial leverage ratio indicates that the company is relying less on debt financing and more on equity, which is a positive sign for investors and creditors as it suggests lower financial risk and higher financial stability.
Overall, PulteGroup Inc's solvency ratios suggest a solid financial position with a conservative capital structure and minimal reliance on debt to fund its operations and investments.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 8,364.01 | 7,355.52 | 12,112.11 | 5,000.70 | 407.94 |
PulteGroup Inc's interest coverage ratio has shown a significant improvement over the years, reflecting its ability to meet its interest obligations comfortably. The ratio has increased steadily from 407.94 in 2020 to 5,000.70 in 2021, and further to 12,112.11 in 2022, indicating a strong ability to cover its interest expenses. However, there was a slight decrease in the ratio to 7,355.52 in 2023 and a subsequent increase to 8,364.01 in 2024.
Overall, the trend in PulteGroup Inc's interest coverage ratio indicates a healthy financial position with ample earnings to cover its interest costs. It suggests the company has a low risk of defaulting on its interest payments, which is a positive indicator for investors and creditors.