Taylor Morn Home (TMHC)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	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	5,245,690	5,339,860	5,177,770	5,190,400
Total stockholders’ equity	US$ in thousands	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	2,537,710	2,480,200	2,398,660	2,390,730
Financial leverage ratio		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	2.07	2.15	2.16	2.17

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 been fluctuating over the past eight quarters, ranging from 1.63 to 2.10. The trend shows a general increase in the ratio over time, indicating that the company's reliance on debt to finance its operations has been growing. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure.

The increasing trend in the financial leverage ratio could indicate a higher level of financial risk for the company, as higher debt levels typically come with increased interest payments and the potential for financial distress during economic downturns. It is important for investors and stakeholders to closely monitor the company's ability to manage its debt levels and meet its financial obligations in the long term.