Dream Finders Homes Inc (DFH)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	4,451,170	4,028,420	3,917,380	3,806,969	3,748,589	3,710,059	3,599,898	3,447,693	3,342,339	3,094,959	2,672,274	2,244,416	1,923,910
Property, plant and equipment	US$ in thousands	26,317	24,898	8,775	8,275	7,043	7,523	7,948	7,564	7,337	7,582	6,511	6,620	6,789
Fixed asset turnover		169.14	161.80	446.43	460.06	532.24	493.16	452.93	455.80	455.55	408.20	410.42	339.04	283.39

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,451,170K ÷ $26,317K
= 169.14

The fixed asset turnover ratio for Dream Finders Homes Inc has shown fluctuations over the periods provided in the data. The company's fixed asset turnover, which measures the efficiency of generating sales from its fixed assets, displayed a significant increase from December 31, 2021, to December 31, 2023, reaching a peak of 532.24. This indicates that the company was able to generate a high level of sales relative to its investment in fixed assets during this period.

However, a notable decline in the fixed asset turnover ratio was observed in the subsequent periods from March 31, 2024, to December 31, 2024. During these periods, the fixed asset turnover ratio decreased sharply, with values dropping to as low as 161.80, suggesting a potential decrease in the efficiency of utilizing fixed assets to generate sales.

It is essential for the company to investigate the reasons behind the fluctuation in the fixed asset turnover ratio to identify any operational inefficiencies or changes in the asset utilization strategy. Further analysis and comparison with industry benchmarks can provide valuable insights into the company's asset management practices and overall operational performance.