TRI Pointe Homes Inc (TPH)

Financial leverage 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
Total assets	US$ in thousands	4,914,590	4,870,230	4,780,560	4,739,240	4,719,940	4,526,040	4,414,660	4,314,070	4,336,220	4,233,680	4,160,160	4,092,950	4,021,980	3,957,560	3,977,900	4,293,050	3,858,690	3,941,470	3,877,550	3,855,900
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
Financial leverage ratio		1.63	1.67	1.65	1.65	1.67	1.72	1.77	1.79	1.77	1.80	1.83	1.83	1.80	1.80	1.83	2.03	1.76	1.87	1.86	1.87

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 been relatively stable over the past eight quarters, ranging from 1.63 to 1.79. This ratio indicates that the company relies more on debt financing rather than equity to fund its operations and growth. A ratio above 1 suggests that the company has more debt than equity in its capital structure.

While the trend shows some fluctuations, the overall leverage ratio has not deviated significantly from the average of around 1.70 during this period. It is essential for investors and creditors to closely monitor this ratio to assess the company's ability to meet its debt obligations and manage its financial risk effectively. A consistent or increasing trend in the financial leverage ratio may indicate heightened financial risk for the company.