Taylor Morn Home (TMHC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,297,130 | 8,672,090 | 8,470,720 | 8,727,780 | 7,738,000 |
| Total stockholders’ equity | US$ in thousands | 5,866,540 | 5,314,940 | 4,630,330 | 3,925,850 | 3,504,540 |
| Financial leverage ratio | 1.58 | 1.63 | 1.83 | 2.22 | 2.21 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,297,130K ÷ $5,866,540K
= 1.58
The financial leverage ratio of Taylor Morn Home has shown a slight increase from 2.21 in December 2020 to 2.22 in December 2021, indicating a slightly higher level of financial leverage. However, there has been a noticeable decline in the ratio from 2022 to 2024, dropping from 1.83 to 1.58. This decrease suggests that the company has been reducing its reliance on debt financing over the years, which could potentially lower financial risk and improve its financial stability. It is essential for Taylor Morn Home to continue monitoring and managing its financial leverage effectively to maintain a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2024