Dream Finders Homes Inc (DFH)

Inventory turnover

		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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Cost of revenue (ttm)	US$ in thousands	2,535,691	3,143,091	3,053,109	3,011,813	3,018,878	2,948,048	2,820,615	2,722,139	2,525,065	2,189,996	1,858,163	1,610,332
Inventory	US$ in thousands	1,849,740	1,672,050	1,524,550	1,251,770	1,234,180	1,212,290	1,138,690	1,175,110	1,370,340	1,254,200	1,112,080	1,066,660	666,492	630,995	550,375
Inventory turnover		1.37	1.88	2.00	2.41	2.45	2.43	2.48	2.32	1.84	1.75	1.67	1.51

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,535,691K ÷ $1,849,740K
= 1.37

Dream Finders Homes Inc's inventory turnover has shown fluctuations over the past 14 reported quarters. The inventory turnover ratio measures the number of times a company's inventory is sold and replaced over a specific period. A higher inventory turnover ratio is generally more favorable, indicating efficient management of inventory levels.

In the latest quarter, ending September 30, 2024, the inventory turnover was reported at 1.37, which is lower than the previous quarter. This slowdown in inventory turnover may suggest issues such as overstocking, difficulty in selling inventory, or a slowdown in sales.

Looking at the trend over the past year, the inventory turnover has been relatively stable, fluctuating between 1.37 and 2.48. This suggests that the company has been maintaining a moderate level of efficiency in managing its inventory during this period.

It is important for Dream Finders Homes Inc to continue monitoring and managing its inventory effectively to ensure optimal utilization of resources and profitability in the long term. Further analysis of the company's sales, production, and inventory management practices could provide additional insights into the factors influencing the inventory turnover ratio.