Taylor Morn Home (TMHC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Taylor Morrison Home Corp.'s solvency ratios provide insight into the company's ability to meet its financial obligations in the long term. The trend in the debt-to-assets ratio over the past eight quarters shows a generally decreasing trend, indicating that the company has been able to reduce its level of debt relative to its total assets. This suggests improved financial health in terms of asset coverage against debt.
Similarly, the debt-to-capital and debt-to-equity ratios also demonstrate a declining trend over the same period. The decreasing ratios indicate that Taylor Morrison has been adjusting its capital structure by reducing its reliance on debt financing in relation to both total capital and equity. This trend is typically viewed positively by investors and creditors as it potentially reduces financial risk.
The financial leverage ratio, which measures the extent to which the company has used debt to finance its assets, has shown a decreasing trend as well. This suggests that Taylor Morrison has been gradually decreasing its reliance on debt to finance its operations, which may enhance its financial stability and reduce potential risks associated with high leverage levels.
Overall, the declining trend in Taylor Morrison's solvency ratios indicates an improvement in the company's financial leverage and debt management. It suggests that the company is moving towards a more balanced and sustainable financial structure, which could enhance its long-term financial stability and resilience.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 307.80 | 357.08 | 386.07 | 479.83 | 615.70 | 770.83 | 1,387.55 | 1,549.35 | 1,566.43 | 1,328.73 | 37,022.20 | — | — | — | — | 267.63 | 275.52 | 1,200.48 | 582.84 | 198.57 |
Taylor Morrison Home Corp.'s interest coverage ratio fluctuated over the past eight quarters. In Q1 2023, the company's interest coverage ratio was quite strong at 116.95, indicating that it generated sufficient operating income to cover its interest expenses nearly 117 times. This was a significant improvement compared to the same quarter in the previous year, where the ratio was 81.19. Throughout Q2 to Q4 2022, the interest coverage ratio remained relatively stable around 80 to 90, suggesting consistent ability to meet interest obligations comfortably.
The sudden peak in Q2 2023 with an interest coverage ratio of 692.63 seems extraordinary and could be an outlier, possibly due to specific events or accounting adjustments. It is recommended to investigate further to understand the reasons behind this anomaly.
Overall, Taylor Morrison Home Corp.'s interest coverage performance indicates a generally healthy financial position, with the ability to service its debt obligations. Monitoring the trend of this ratio over time will be crucial in assessing the company's financial stability and risk management.