TRI Pointe Homes Inc (TPH)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,914,590 | 4,719,940 | 4,336,220 | 4,021,980 | 3,858,690 |
| Total stockholders’ equity | US$ in thousands | 3,010,960 | 2,832,390 | 2,447,620 | 2,232,540 | 2,186,530 |
| Financial leverage ratio | 1.63 | 1.67 | 1.77 | 1.80 | 1.76 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,914,590K ÷ $3,010,960K
= 1.63
The financial leverage ratio of Tri Pointe Homes Inc. has shown a slight decrease from 1.67 in 2022 to 1.63 in 2023. This indicates that the company's financial leverage has improved slightly, as it now has less reliance on debt to finance its operations.
Comparing the trend over the past five years, we can see a general decline in the financial leverage ratio from 1.76 in 2019 to 1.63 in 2023. This implies that the company has been reducing its debt levels relative to its equity over this period, which may signify a more conservative financial strategy or improved financial health.
Overall, a lower financial leverage ratio suggests that Tri Pointe Homes Inc. has a lower level of financial risk associated with debt compared to previous years. However, it is essential for the company to maintain a balance between debt and equity to ensure sustainable growth and stability in the long term.
Peer comparison
Dec 31, 2023