TRI Pointe Homes Inc (TPH)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.47 | 1.63 | 1.67 | 1.77 | 1.80 |
TRI Pointe Homes Inc's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets, capital, and equity over the analyzed period from 2020 to 2024.
The Debt-to-assets ratio remained at 0.00 for each year, signaling that the company's total debt was effectively non-existent in relation to its total assets. This suggests that the company has a low risk of insolvency due to excessive debt burdens.
Similarly, the Debt-to-capital ratio also maintained a consistent 0.00 across all years, showcasing that the company's debt in relation to its total capital structure was negligible. This indicates that TRI Pointe Homes Inc relied more on equity financing rather than debt to fund its operations and growth.
The Debt-to-equity ratio also stayed at 0.00 for all years, reflecting the minimal debt levels in comparison to the company's shareholders' equity. This implies that the company's financial risk due to debt obligations was very low, as shareholders provided most of the financing.
Furthermore, the Financial leverage ratio declined from 1.80 in 2020 to 1.47 in 2024, indicating that the company reduced its reliance on debt financing relative to equity financing over the years. A decreasing trend in this ratio suggests a strengthening financial position and lower financial risk as the company's debt levels decreased relative to its equity.
In conclusion, TRI Pointe Homes Inc's solvency ratios demonstrate a stable and robust financial position with minimal debt levels and a healthy balance between debt and equity financing, reflecting a low risk of financial distress and good solvency.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 2.91 | 32.04 | 6.96 | 4.71 |
The interest coverage ratio for TRI Pointe Homes Inc has shown significant fluctuations over the years. In December 31, 2020, the ratio was 4.71, indicating that the company's operating income was able to cover its interest expenses nearly 5 times. This level of coverage suggests a moderate ability to meet interest payments.
By December 31, 2021, the interest coverage ratio improved to 6.96, indicating a stronger ability to cover interest costs compared to the previous year. This level of coverage is a positive sign, showing that the company's operating income has increased relative to its interest expenses.
In December 31, 2022, the interest coverage ratio spiked to 32.04, which is a significant improvement over the previous years and indicates a very strong ability to cover interest payments. A higher ratio like this suggests that the company is very capable of meeting its interest obligations even in adverse conditions.
However, by December 31, 2023, the interest coverage ratio dropped to 2.91, signaling a decrease in the company's ability to cover its interest expenses compared to the previous year. This decline may raise concerns about the company's financial health and ability to meet its debt obligations.
Unfortunately, there is no data available for December 31, 2024, which limits our ability to provide a complete analysis for that year. It is crucial for the company to monitor its interest coverage ratio consistently to ensure it maintains a healthy financial position and can meet its interest payments on time.