TRI Pointe Homes Inc (TPH)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| Debt-to-capital 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 |
| 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 |
| Financial leverage ratio | 1.47 | 1.47 | 1.46 | 1.63 | 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 |
TRI Pointe Homes Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 throughout the reporting periods, suggesting that the company has either very little to no long-term debt or that its assets, capital, and equity significantly outweigh any debt obligations.
The Financial leverage ratio, which measures the company's level of debt in relation to its equity, shows a declining trend over time. Starting at 2.03 in March 2020, the ratio decreases consistently to 1.47 by December 2024. This decreasing trend indicates that TRI Pointe Homes Inc has been effectively managing its debt levels relative to its equity, resulting in lower financial risk and improved solvency.
Overall, the solvency ratios paint a picture of a financially stable company with a strong balance sheet, minimal debt burdens, and a conservative capital structure, which bodes well for its ability to weather economic challenges and pursue growth opportunities in the future.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 59.88 | 11.31 | 5.49 | 4.71 | 5.86 | 11.52 | 36.04 | 65.19 | 232.03 | 335.60 | 881.61 | — | — | — | — | — | — | — | — |
TRI Pointe Homes Inc's interest coverage ratio has shown a fluctuating trend over the past few years. The ratio was not available up until the end of 2021, suggesting that the company may not have had enough earnings to cover its interest expenses during that period.
However, starting from the first quarter of 2022, the interest coverage ratio improved significantly, reaching 881.61, indicating that the company's operating income was more than sufficient to cover its interest payments. This strong performance continued into the second quarter of 2022, with a ratio of 335.60.
In the subsequent quarters, the interest coverage ratio declined, but remained above 10, indicating that TRI Pointe Homes Inc still had a comfortable margin to cover its interest obligations. Overall, the improving trend in the interest coverage ratio from 2022 onwards suggests that the company's ability to meet its interest payments has strengthened, which is a positive sign for investors and creditors.