TRI Pointe Homes Inc (TPH)

Debt-to-equity 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-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

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 been gradually decreasing over the past eight quarters, indicating a positive trend towards lower financial leverage and a stronger equity position relative to its debt. The ratio decreased from 0.56 in Q1 2022 to 0.46 in Q4 2023. This is a favorable trend as it suggests that the company is relying less on debt financing and has been able to strengthen its financial position over time.

A lower debt-to-equity ratio is generally viewed positively by investors as it signifies a lower level of financial risk and greater financial stability. Tri Pointe Homes Inc.'s decreasing trend in this ratio may indicate effective management of its debt levels or increased profitability, which has allowed the company to reduce its reliance on borrowing. Overall, the decreasing trend in the debt-to-equity ratio reflects a sound financial strategy and could enhance investor confidence in the company's financial health and prospects.