TRI Pointe Homes Inc (TPH)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,010,960 | 2,832,390 | 2,447,620 | 2,232,540 | 2,186,530 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $3,010,960K
= 0.00
Tri Pointe Homes Inc.'s debt-to-equity ratio has shown a declining trend over the past five years from 0.59 in 2019 to 0.46 in 2023. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments, which could be viewed positively by investors and creditors.
A lower debt-to-equity ratio typically suggests a lower financial risk for the company, as it indicates a greater proportion of equity in its capital structure compared to debt. This may imply a stronger financial position and better ability to withstand economic downturns or unexpected challenges.
The decreasing trend in the debt-to-equity ratio may reflect improved financial management by Tri Pointe Homes Inc., with efforts to pay down debt, generate more internal funds, or raise additional equity capital. This trend could also indicate a more conservative approach to capital structure management, which could be attractive to investors seeking stable and sustainable companies.
Overall, the declining debt-to-equity ratio of Tri Pointe Homes Inc. signals a positive trajectory in terms of its financial leverage and capital structure, potentially enhancing its long-term financial stability and attractiveness to stakeholders.
Peer comparison
Dec 31, 2023