Taylor Morn Home (TMHC)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $5,314,940K
= 0.00
The debt-to-equity ratio of Taylor Morrison Home Corp. has fluctuated over the five-year period from 2019 to 2023. The ratio indicates the proportion of debt used to finance the company's assets relative to shareholder equity. A decreasing trend in the ratio is typically considered positive, as it suggests a lower reliance on debt financing.
In 2019, the company had a debt-to-equity ratio of 0.76, indicating that for every dollar of equity, there was $0.76 of debt. The ratio decreased to 0.54 in 2022, reflecting a reduction in the company's debt relative to equity. This trend continued in 2023 when the ratio further decreased to 0.38, signaling a more conservative debt structure and potentially lower financial risk.
The significant drop in the debt-to-equity ratio from 2021 to 2023 suggests that Taylor Morrison Home Corp. has been actively managing its debt levels and strengthening its financial position by increasing equity relative to debt. This could enhance the company's solvency and financial stability, making it more attractive to investors and lenders. Overall, the trend in the debt-to-equity ratio indicates improved financial health and risk management by Taylor Morrison Home Corp.
Peer comparison
Dec 31, 2023