Dream Finders Homes Inc (DFH)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021
Inventory turnover		1.18	1.37	1.88	2.00	2.41	2.45	2.43	2.48	2.32	1.84	1.75	1.67	1.51
DOH	days	309.64	266.26	194.17	182.26	151.70	149.22	150.09	147.35	157.57	198.08	209.03	218.45	241.77

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.18
= 309.64

The days of inventory on hand (DOH) for Dream Finders Homes Inc has fluctuated over the analyzed period, ranging from a low of 147.35 days as of March 31, 2023, to a high of 309.64 days as of December 31, 2024.

A decreasing trend in DOH is generally considered positive as it indicates that the company is selling inventory at a faster rate relative to the reporting period, which could suggest efficient inventory management and potentially better cash flow.

Conversely, an increasing trend in DOH, as observed towards the end of the period, such as the significant increase to 309.64 days as of December 31, 2024, may raise concerns about the company's ability to sell inventory quickly. This could lead to excess inventory levels, carrying costs, and potential obsolescence risks.

Therefore, it is essential for Dream Finders Homes Inc to closely monitor and manage their inventory levels to ensure optimal balance between maintaining sufficient inventory for sales demand while avoiding excessive carrying costs and risks associated with slow-moving or obsolete inventory.