Dream Finders Homes Inc (DFH)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 3,748,590 | 3,342,340 | 1,923,910 |
| Total current assets | US$ in thousands | 1,745,910 | 1,539,640 | 1,293,890 |
| Total current liabilities | US$ in thousands | 531,584 | 968,448 | 760,000 |
| Working capital turnover | 3.09 | 5.85 | 3.60 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,748,590K ÷ ($1,745,910K – $531,584K)
= 3.09
The working capital turnover for Dream Finders Homes Inc has shown fluctuations over the past three years. In 2023, the working capital turnover ratio decreased to 3.09 from 5.85 in 2022. This implies that the company was able to generate revenue equivalent to 3.09 times its working capital during 2023, a decrease from the previous year.
The significant drop in the working capital turnover from 2022 to 2023 could indicate either a decrease in sales generated from the working capital or an increase in the amount of working capital required to support the same level of sales.
Comparing the 2023 ratio to 2021, where the working capital turnover was 3.60, it is evident that the efficiency of utilizing working capital to generate revenue has decreased over the three-year period.
Further analysis of the company's financial statements and operational efficiency may be necessary to understand the factors contributing to the fluctuations in the working capital turnover ratio over the years.
Peer comparison
Dec 31, 2023