TRI Pointe Homes Inc (TPH)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,891,120 | 4,914,590 | 4,719,940 | 4,336,220 | 4,021,980 |
| Total stockholders’ equity | US$ in thousands | 3,335,710 | 3,010,960 | 2,832,390 | 2,447,620 | 2,232,540 |
| Financial leverage ratio | 1.47 | 1.63 | 1.67 | 1.77 | 1.80 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,891,120K ÷ $3,335,710K
= 1.47
The financial leverage ratio for TRI Pointe Homes Inc has demonstrated a decreasing trend over the years from 2020 to 2024, indicating a reduction in the company's reliance on debt to finance its operations. This downward trend suggests that the company has been gradually improving its financial health by potentially paying down debt or increasing equity in its capital structure. With a ratio of 1.80 in 2020 declining to 1.47 in 2024, it appears that TRI Pointe Homes Inc has been managing its debt levels effectively while maintaining a healthy balance between debt and equity. A lower financial leverage ratio generally signifies lower financial risk and greater stability for the company. It is positive to see this negative trend in the financial leverage ratio for TRI Pointe Homes Inc.
Peer comparison
Dec 31, 2024