Taylor Morn Home (TMHC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,672,090 | 8,470,720 | 8,727,780 | 7,738,000 | 5,245,690 |
| Total stockholders’ equity | US$ in thousands | 5,314,940 | 4,630,330 | 3,925,850 | 3,504,540 | 2,537,710 |
| Financial leverage ratio | 1.63 | 1.83 | 2.22 | 2.21 | 2.07 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,672,090K ÷ $5,314,940K
= 1.63
The financial leverage ratio of Taylor Morrison Home Corp. has shown a decreasing trend over the past five years, going from 2.07 in 2019 to 1.63 in 2023. This indicates that the company has been relying less on debt to finance its operations and investments in recent years. A lower financial leverage ratio suggests a lower level of financial risk as the company is using less debt to fund its activities. This could be positive for the company's financial stability and ability to manage debt obligations. However, it's also important to consider the appropriate level of leverage for the industry and company's specific circumstances to determine the optimal capital structure.
Peer comparison
Dec 31, 2023