Taylor Morn Home (TMHC)
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 | 1.63 | 1.83 | 2.22 | 2.21 | 2.07 |
Taylor Morrison Home Corp.'s solvency ratios have shown a positive trend over the past five years, indicating an improvement in the company's overall financial health and ability to meet its obligations.
The debt-to-assets ratio, which measures the proportion of total assets funded by debt, has decreased from 0.37 in 2019 to 0.23 in 2023. This implies that the company has become less reliant on debt financing to support its assets.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also shown a declining trend over the same period. The debt-to-capital ratio has decreased from 0.43 in 2019 to 0.28 in 2023, indicating a lower reliance on debt in funding the company's operations. The debt-to-equity ratio has also decreased from 0.76 in 2019 to 0.38 in 2023, suggesting that the company's debt levels relative to its equity have improved.
Lastly, the financial leverage ratio, which measures the company's total assets relative to its equity, has also shown a decreasing trend from 2.07 in 2019 to 1.63 in 2023. This indicates that the company's equity is increasingly being used to finance its assets, which can be seen as a positive sign of financial stability.
Overall, the downward trend in Taylor Morrison Home Corp.'s solvency ratios over the past five years reflects a stronger financial position and lower financial risk for the company, which may be perceived positively by investors and creditors.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 307.79 | 615.70 | 1,566.43 | — | 275.52 |
The interest coverage ratio for Taylor Morrison Home Corp. provides insights into the company's ability to cover its interest payments with its operating income. A higher interest coverage ratio indicates a better ability to meet interest obligations.
Based on the data provided, the interest coverage ratio for Taylor Morrison Home Corp. was not available for December 31, 2023, and December 31, 2020. For December 31, 2022, the interest coverage ratio was 81.19, showing that the company generated 81 times the operating income to cover its interest expenses. This signifies a strong ability to meet interest obligations.
For December 31, 2021, the interest coverage ratio significantly increased to 234.88, indicating a substantial improvement in the company's ability to cover its interest payments compared to the previous year. However, the absence of data for 2020 and 2023 limits the trend analysis for the interest coverage ratio over consecutive years.
In conclusion, the available data suggests that Taylor Morrison Home Corp. experienced improvements in its interest coverage ratio, particularly in 2021, demonstrating a positive trend in the company's ability to meet its interest obligations. It would be beneficial to monitor future financial statements to assess the company's ongoing capability to cover its interest expenses.