Taylor Morn Home (TMHC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,314,940 | 4,630,330 | 3,925,850 | 3,504,540 | 2,537,710 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $5,314,940K)
= 0.00
The debt-to-capital ratio of Taylor Morrison Home Corp. has shown a decreasing trend over the past five years. In 2019, the ratio stood at 0.43, and it remained relatively stable in 2020 at 0.46. However, starting from 2021, there was a notable decrease in the ratio to 0.46, followed by a further decline to 0.35 in 2022, and reaching its lowest point at 0.28 in 2023.
This declining trend in the debt-to-capital ratio indicates that Taylor Morrison Home Corp. has been reducing its reliance on debt financing in relation to its total capital structure over the years. A lower debt-to-capital ratio suggests a stronger financial position and lower financial risk, as the company is using a smaller proportion of debt to fund its operations and investments compared to its equity.
It is essential to continue monitoring this ratio to ensure that the company maintains a healthy balance between debt and equity in its capital structure, which can impact its financial flexibility and risk profile in the long term. Overall, the decreasing trend in Taylor Morrison Home Corp.'s debt-to-capital ratio reflects a positive trend towards a more sustainable and balanced capital structure.
Peer comparison
Dec 31, 2023