PulteGroup Inc (PHM)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	16,087,000	14,796,500	13,352,600	12,205,500	10,715,600
Total stockholders’ equity	US$ in thousands	10,383,300	8,914,100	7,489,520	6,569,990	5,458,180
Financial leverage ratio		1.55	1.66	1.78	1.86	1.96

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,087,000K ÷ $10,383,300K
= 1.55

PulteGroup Inc's financial leverage ratio has been progressively decreasing over the last five years, indicating a trend towards lower leverage. The ratio decreased from 1.96 in 2019 to 1.55 in 2023. This suggests that the company's reliance on debt financing has been declining relative to its equity financing, which may reflect a more conservative approach to managing its capital structure. A lower financial leverage ratio typically signifies less financial risk for the company, as there is less debt that needs to be serviced and repaid. Overall, the decreasing trend in PulteGroup Inc's financial leverage ratio indicates a strengthening financial position in terms of debt management.