Dream Finders Homes Inc (DFH)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,753,448 | 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 | 1,487,480 | 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 |
| 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,753,448K ÷ $1,487,480K
= 1.18
The inventory turnover for Dream Finders Homes Inc has shown a fluctuating trend over the period from December 31, 2021, to December 31, 2024. The inventory turnover ratio measures how efficiently the company manages its inventory by calculating how many times a company sells and replaces its inventory during a specific period.
From December 31, 2021, to September 30, 2023, the inventory turnover ratio steadily increased from 1.51 to 2.45, indicating that Dream Finders Homes Inc was managing its inventory more efficiently over this period. The company was able to sell and replace its inventory at a faster rate during these quarters.
However, from December 31, 2023, to December 31, 2024, the inventory turnover ratio started to decline, dropping from 2.41 to 1.18. This decrease suggests that the company may have been facing challenges in managing its inventory efficiently during these quarters, potentially leading to excess inventory levels or slower inventory turnover.
It is essential for Dream Finders Homes Inc to monitor its inventory turnover ratio closely and take appropriate actions to optimize its inventory management practices. By improving inventory turnover, the company can reduce carrying costs, minimize the risk of obsolete inventory, and enhance overall operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024