Dream Finders Homes Inc (DFH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Inventory turnover | 2.41 | 2.32 | 1.51 |
| Receivables turnover | — | — | — |
| Payables turnover | — | — | — |
| Working capital turnover | 3.09 | 5.85 | 3.60 |
The activity ratios provide valuable insights into the efficiency of Dream Finders Homes Inc's operations.
1. Inventory Turnover:
- Dream Finders Homes Inc's inventory turnover has been relatively stable over the past three years, increasing from 1.51 in 2021 to 2.41 in 2023.
- A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which is generally a positive sign of operational efficiency.
2. Receivables Turnover:
- The information for receivables turnover is not provided in the data table, which makes it challenging to assess how effectively the company is collecting on its credit sales.
3. Payables Turnover:
- The data for payables turnover is missing, making it difficult to evaluate how efficiently Dream Finders Homes Inc is managing its trade payables.
4. Working Capital Turnover:
- Dream Finders Homes Inc's working capital turnover has shown some fluctuation, decreasing from 5.85 in 2022 to 3.09 in 2023.
- A lower working capital turnover ratio may indicate that the company is less efficient in generating sales revenue relative to its working capital.
Overall, while the inventory turnover ratio suggests improvement in inventory management, the absence of data for receivables turnover and payables turnover limits a comprehensive analysis of Dream Finders Homes Inc's overall activity efficiency.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 151.70 | 157.57 | 241.77 |
| Days of sales outstanding (DSO) | days | — | — | — |
| Number of days of payables | days | — | — | — |
The Days of Inventory on Hand (DOH) for Dream Finders Homes Inc decreased from 157.57 days in 2022 to 151.70 days in 2023, indicating an improvement in managing inventory levels efficiently. A lower DOH signifies that the company is selling its inventory more quickly.
Unfortunately, the data provided for Days of Sales Outstanding (DSO) and Number of Days of Payables for all three years is missing. Without this information, we cannot assess the efficiency of the company in collecting receivables or paying its suppliers.
In summary, Dream Finders Homes Inc has shown a positive trend in reducing its Days of Inventory on Hand, but additional data is required to evaluate its performance in terms of sales collection and payment to suppliers.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Fixed asset turnover | 532.24 | 455.55 | 283.39 |
| Total asset turnover | 1.46 | 1.41 | 1.02 |
Dream Finders Homes Inc's long-term activity ratios indicate how efficiently the company utilizes its assets to generate sales. The fixed asset turnover ratio has shown a continuous improvement from 283.39 in 2021 to 455.55 in 2022 and further to 532.24 in 2023. This indicates that the company is generating more revenue per dollar of fixed assets invested, reflecting effective utilization of its fixed assets to drive sales.
On the other hand, the total asset turnover ratio has also demonstrated a positive trend, increasing from 1.02 in 2021 to 1.41 in 2022 and reaching 1.46 in 2023. This implies that Dream Finders Homes Inc is efficiently using its total assets to generate revenue, showcasing an improvement in its overall asset management efficiency.
The increasing trend in both fixed asset turnover and total asset turnover ratios suggests that the company's asset utilization and operational efficiency have been improving over the years, which is a positive sign for the company's long-term financial performance and sustainability.