Dream Finders Homes Inc (DFH)

Inventory turnover

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

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,011,810K ÷ $1,251,770K
= 2.41

Inventory turnover measures how efficiently a company is managing its inventory levels by indicating how many times during a period the company's inventory is sold and replaced. Dream Finders Homes Inc's inventory turnover has shown improvement over the past three years, increasing from 1.51 in 2021 to 2.41 in 2023. This indicates that Dream Finders Homes Inc is selling its inventory more frequently each year. A higher inventory turnover ratio generally implies that the company is managing its inventory effectively, minimizing the risk of obsolescence and reducing holding costs. Dream Finders Homes Inc's increasing inventory turnover is a positive sign that the company is managing its inventory efficiently and could potentially generate more revenue from its inventory in the future.