Dream Finders Homes Inc (DFH)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Inventory turnover		0.27	2.41	2.32	1.51
DOH	days	1,337.34	151.70	157.57	241.77

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.27
= 1,337.34

The analysis of Dream Finders Homes Inc's days of inventory on hand (DOH) reveals significant fluctuations over the years.

Starting at 241.77 days as of December 31, 2021, the company seems to have an extended period of inventory turnover. However, there is a noticeable improvement in efficiency by December 31, 2022, with the DOH decreasing to 157.57 days, indicating a positive trend in managing inventory levels more effectively.

Further progress is evident by December 31, 2023, as the DOH drops to 151.70 days, reflecting continued efforts to enhance inventory management practices.

However, a drastic surge is observed by December 31, 2024, with the DOH escalating to 1,337.34 days, which is a cause for concern and requires closer examination. Such a sharp increase may suggest potential issues in inventory control, possibly leading to excess stock or sluggish sales.

In conclusion, while there have been improvements in inventory turnover in recent years, the significant spike in days of inventory on hand in 2024 warrants a thorough review of Dream Finders Homes Inc's inventory management strategies to ensure optimal efficiency and sustainable operations.