Dream Finders Homes Inc (DFH)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Cost of revenue	US$ in thousands	405,978	3,011,810	2,722,140	1,610,330
Inventory	US$ in thousands	1,487,480	1,251,770	1,175,110	1,066,660
Inventory turnover		0.27	2.41	2.32	1.51

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $405,978K ÷ $1,487,480K
= 0.27

Dream Finders Homes Inc's inventory turnover has shown some fluctuations over the years. In December 31, 2021, the inventory turnover was 1.51, indicating that the company turned over its inventory 1.51 times during that period.

The inventory turnover increased significantly to 2.32 in December 31, 2022, and further to 2.41 in December 31, 2023. These higher turnover ratios suggest that Dream Finders Homes Inc improved its efficiency in managing inventory and selling its products.

However, there was a notable decline in inventory turnover to a low of 0.27 by December 31, 2024. A low inventory turnover ratio can indicate possible overstocking or slow sales, which may lead to higher holding costs and potentially obsolete inventory.

Overall, while the trend initially showed improvements in inventory turnover, the sharp decline in 2024 raises concerns about inventory management efficiency and sales performance that may need further investigation by the company's management.