Taylor Morn Home (TMHC)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total assets	US$ in thousands	9,297,130	9,300,440	9,099,070	8,910,340	8,672,090	8,436,920	8,748,790	8,376,190	8,470,720	8,593,630	8,650,220	8,517,980	8,727,780	8,403,050	8,138,760	7,975,480	7,738,000	7,834,450	8,322,330	8,262,370
Total stockholders’ equity	US$ in thousands	5,866,540	5,723,460	5,526,540	5,426,170	5,314,940	5,175,110	5,095,310	4,846,550	4,630,330	4,403,470	4,193,900	4,094,800	3,925,850	3,745,900	3,668,850	3,655,560	3,504,540	3,542,140	3,424,740	3,423,040
Financial leverage ratio		1.58	1.62	1.65	1.64	1.63	1.63	1.72	1.73	1.83	1.95	2.06	2.08	2.22	2.24	2.22	2.18	2.21	2.21	2.43	2.41

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 downward trend over the past few years, starting at 2.41 in March 2020 and gradually decreasing to 1.58 by December 2024. This indicates that the company's reliance on debt to finance its operations has been decreasing over time. A lower financial leverage ratio is generally considered favorable as it suggests a lower level of financial risk and greater financial stability.

The decreasing trend in the financial leverage ratio may be reflective of Taylor Morn Home's efforts to reduce its debt levels and strengthen its balance sheet. It is important for the company to maintain a prudent level of leverage to ensure sustainable growth and mitigate potential financial distress in the future. Overall, a declining financial leverage ratio demonstrates improved financial health and indicates that Taylor Morn Home is managing its debt levels effectively.