Dream Finders Homes Inc (DFH)

Days of inventory on hand (DOH)

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

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.41
= 151.70

Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days a company takes to sell its inventory. A lower DOH indicates better inventory management and suggests that the company can turn over its inventory more quickly.

For Dream Finders Homes Inc, the DOH has been decreasing over the years, which is a positive trend. In 2021, the company had a relatively high DOH of 241.77 days, indicating that it took the company a longer period to sell its inventory. However, by the end of 2023, the DOH had decreased to 151.70 days, signaling that the company was able to improve its inventory turnover and sell its inventory more efficiently.

This improvement in inventory turnover could be attributed to better inventory management practices, streamlining of operations, or adjustments in the company's product offerings. Overall, the decreasing trend in DOH for Dream Finders Homes Inc is a positive indicator of the company's ability to manage its inventory effectively and optimize its working capital.