TRI Pointe Homes Inc (TPH)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 4,914,590 | 4,719,940 | 4,336,220 | 4,021,980 | 3,858,690 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $4,914,590K
= 0.00
The debt-to-assets ratio of Tri Pointe Homes Inc. has been showing a decreasing trend over the past five years. It decreased from 0.33 in 2019 to 0.28 in 2023. This indicates that the company has been relying less on debt to finance its assets, which can be viewed positively as lower levels of debt may reduce the company's financial risk and increase its financial stability.
A lower debt-to-assets ratio suggests that a larger portion of the company's assets are funded by equity, which may indicate a stronger financial position and a lower dependency on borrowing. It also suggests that the company may be managing its debt levels prudently in relation to its asset base.
However, it's important to note that the optimal debt-to-assets ratio can vary by industry and company, and a low ratio may also indicate lower leverage and potentially lower returns on equity. Additionally, a decrease in the ratio over time may also indicate improving financial health or better management of debt obligations.
Overall, Tri Pointe Homes Inc.'s decreasing trend in the debt-to-assets ratio may reflect a more conservative approach to managing its capital structure and financial risk over the years.
Peer comparison
Dec 31, 2023