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Hovnanian Enterprises Inc key statistics and ratios

In fiscal 2025, Hovnanian Enterprises Inc had return on equity of 6.3%, a net margin of 1.7% and debt equal to 111.3% of equity. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year2009Oct 20092010Oct 20102011Oct 20112012Oct 20122013Oct 20132014Oct 20142015Oct 20152016Oct 20162017Oct 20172018Oct 20182019Oct 20192020Oct 20202021Oct 20212022Oct 20222023Oct 20232024Oct 20242025Oct 2025LTMJul 2026
Net margin−44.9%0.2%−25.2%−4.5%1.7%14.9%−0.7%−0.1%−13.5%0.2%−2.1%2.0%19.8%6.7%6.5%7.4%1.7%0.1%
Free-cash-flow margin−1.9%2.2%−18.3%−4.9%0.4%−9.4%−15.0%13.8%12.0%−3.6%−12.6%12.3%7.3%2.6%15.1%0.2%5.6%7.0%
Return on equity—————————————69.9%37.1%32.3%6.3%0.3%
Return on assets—0.1%−16.7%−4.0%1.8%15.2%−0.7%−0.1%−15.6%0.3%−2.4%2.5%26.5%8.0%7.1%8.7%2.0%0.1%
Asset turnover—0.750.660.901.081.020.881.111.151.121.141.261.341.201.091.181.141.03
Debt to equity————————————717.5%301.5%184.0%112.0%111.3%113.0%
Effective tax rate————−42.7%————44.8%—8.1%—29.5%19.6%23.7%25.8%21.6%
Capital spending as % of revenue0.0%0.2%0.1%0.3%0.1%0.2%0.1%0.3%0.3%0.3%0.2%0.1%0.2%0.4%0.7%0.6%0.7%0.7%
Free cash flow ÷ net income—>999%——24.6%−63.2%———<−999%—625.5%37.1%39.4%232.4%2.6%324.3%>999%
Dividends ÷ net income———————————0.0%0.0%5.5%6.0%4.8%20.9%—
Dividends and buybacks ÷ free cash flow———————————0.0%0.0%29.8%3.7%644.0%24.6%9.3%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

2 of 3 checks passed · July 31, 2026
  • Short-term assets cover short-term liabilities The company doesn't report a short-term split. Not assessable.
  • Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
  • More cash than debt Cash or debt not separately reported. Not assessable.
  • Debt below 40% of shareholders' equity Debt is 110% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 635% to 110% over five years.
  • A year's operating cash flow covers at least 20% of debt $219m of operating cash flow against $902m of debt.
  • Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Hovnanian Enterprises Inc's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

36 /100

Weak moat

How hard Hovnanian Enterprises's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 2 / 20

    Net income has been a median 3.0% of total assets over 10 years.

  • Durability 0 / 20

    Net margin has been a median 2.5%; its worst year was -12.7%.

  • Cash conversion 12 / 20

    Free cash flow was positive in 9 of 10 years, at a median 5.2% of revenue.

  • Discipline 15 / 20

    The diluted share count rose 5.4% over five years; stock-based pay has been a median 0.3% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

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Figures from Hovnanian Enterprises Inc's SEC filings (10-K and 10-Q), retrieved October 26, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Hovnanian Enterprises Inc.