TRI Pointe Homes Inc (TPH)

Debt-to-capital 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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	3,010,960	2,923,400	2,896,110	2,863,620	2,832,390	2,625,730	2,487,570	2,408,230	2,447,620	2,354,140	2,279,290	2,239,760	2,232,540	2,198,090	2,175,800	2,115,280	2,186,530	2,111,680	2,086,630	2,057,020
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

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,010,960K)
= 0.00

Tri Pointe Homes Inc.'s debt-to-capital ratio has been relatively stable over the past 8 quarters, ranging from 0.31 to 0.36. This ratio indicates the proportion of the company's capital structure that is financed by debt, with the rest being financed by equity.

A lower debt-to-capital ratio generally suggests that the company relies less on debt to finance its operations and growth, which can be viewed positively as it may indicate lower financial risk. Conversely, a higher ratio may suggest a higher level of financial risk due to increased reliance on debt.

In the case of Tri Pointe Homes Inc., the gradual increase in the debt-to-capital ratio from 0.31 in Q4 2023 to 0.36 in Q1 2022 may indicate a growing reliance on debt over time. It is important for investors and stakeholders to monitor this trend closely to assess the company's ability to manage its debt levels effectively and sustain its financial health in the long term.