Dream Finders Homes Inc (DFH)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,451,610 | 3,748,590 | 3,342,340 | 1,923,910 |
| Total current assets | US$ in thousands | 1,761,860 | 1,745,910 | 1,539,640 | 1,293,890 |
| Total current liabilities | US$ in thousands | 991,503 | 531,584 | 968,448 | 760,000 |
| Working capital turnover | 5.78 | 3.09 | 5.85 | 3.60 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,451,610K ÷ ($1,761,860K – $991,503K)
= 5.78
The working capital turnover ratio of Dream Finders Homes Inc has experienced fluctuations over the past four years. In December 31, 2021, the ratio was 3.60, indicating that the company generated $3.60 in revenue for every dollar of working capital. This ratio increased significantly to 5.85 by December 31, 2022, implying an improvement in the efficiency of the company in utilizing its working capital to generate sales.
However, there was a notable decline in the working capital turnover ratio in December 31, 2023, dropping to 3.09. This suggests a potential decrease in the company's ability to generate revenue using its working capital efficiently. Subsequently, Dream Finders Homes Inc managed to rebound in December 31, 2024, with a ratio of 5.78, indicating a resurgence in the effectiveness of their working capital management in generating sales.
Overall, the trend in the working capital turnover ratio shows some variability, reflecting the company's ability to optimize its working capital to drive revenue generation. It is essential for Dream Finders Homes Inc to monitor and maintain this ratio at a favorable level to ensure efficient utilization of working capital resources.
Peer comparison
Dec 31, 2024