Dream Finders Homes Inc (DFH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Inventory turnover | 0.27 | 2.41 | 2.32 | 1.51 |
| Receivables turnover | — | — | — | — |
| Payables turnover | — | — | — | — |
| Working capital turnover | 5.78 | 3.09 | 5.85 | 3.60 |
Dream Finders Homes Inc's inventory turnover has shown an improving trend over the years, increasing from 1.51 in 2021 to 2.32 in 2022 and further to 2.41 in 2023, indicating that the company is selling its inventory more efficiently. However, there was a significant decline in 2024, with the inventory turnover dropping to 0.27. This suggests that the company may have encountered challenges managing its inventory during that period.
The receivables turnover ratio is not provided for any of the years, which makes it difficult to assess how effectively Dream Finders Homes Inc is collecting its receivables from customers. A higher receivables turnover ratio would indicate a more efficient collection of receivables.
Similarly, the payables turnover ratio is not available for any of the years, making it hard to evaluate the company's payment practices to suppliers. A higher payables turnover ratio would suggest that the company is paying its suppliers more quickly.
The working capital turnover has shown fluctuations over the years, with a significant increase from 3.60 in 2021 to 5.85 in 2022, indicating that the company generated more revenue relative to its working capital. However, the ratio decreased to 3.09 in 2023 and then increased again to 5.78 in 2024. This suggests variations in how efficiently Dream Finders Homes Inc is utilizing its working capital to generate sales.
In conclusion, while the inventory turnover and working capital turnover ratios provide insight into Dream Finders Homes Inc's operational efficiency and liquidity management, the absence of data for receivables and payables turnover limits a comprehensive analysis of the company's overall activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1,337.34 | 151.70 | 157.57 | 241.77 |
| Days of sales outstanding (DSO) | days | — | — | — | — |
| Number of days of payables | days | — | — | — | — |
Dream Finders Homes Inc's Days of Inventory on Hand (DOH) has shown a significant improvement over the years, decreasing from 241.77 days as of December 31, 2021 to 151.70 days as of December 31, 2023. However, there was a notable spike to 1,337.34 days as of December 31, 2024, which may signal potential issues with managing inventory levels efficiently.
Regarding Days of Sales Outstanding (DSO) and Number of Days of Payables, the data provided indicates that there is not enough information available to calculate these ratios for the years in question. This lack of data makes it challenging to assess the company's efficiency in collecting receivables and managing payables.
In summary, while Dream Finders Homes Inc has shown some improvement in managing its inventory turnover, further analysis is needed to evaluate its performance in terms of sales collection and payment to suppliers.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Fixed asset turnover | 169.15 | 532.24 | 455.55 | 283.39 |
| Total asset turnover | 1.34 | 1.46 | 1.41 | 1.02 |
Dream Finders Homes Inc's fixed asset turnover ratio has shown an increasing trend over the period from December 31, 2021, to December 31, 2024, indicating improved efficiency in utilizing its fixed assets to generate sales. The ratio has significantly increased from 283.39 in 2021 to 532.24 in 2023, before experiencing a decrease to 169.15 in 2024.
On the other hand, the total asset turnover ratio illustrates how well the company is utilizing all its assets to generate revenue. Dream Finders Homes Inc's total asset turnover ratio has also shown an increasing trend over the same period, reflecting better overall asset utilization efficiency. The ratio has improved from 1.02 in 2021 to 1.46 in 2023, declines slightly to 1.34 in 2024.
Overall, the company appears to be effectively managing its assets to generate sales, with both the fixed asset turnover and total asset turnover ratios trending positively over the years. However, the significant drop in the fixed asset turnover ratio in 2024 may warrant further investigation to understand the factors behind this decline.