Dream Finders Homes Inc (DFH)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,451,170 | 4,028,420 | 3,917,380 | 3,806,969 | 3,748,589 | 3,710,059 | 3,599,898 | 3,447,693 | 3,342,339 | 3,094,959 | 2,672,274 | 2,244,416 | 1,923,910 |
| Total current assets | US$ in thousands | 1,761,860 | 2,054,640 | 1,946,850 | 1,763,970 | 1,745,910 | 1,564,300 | 1,504,800 | 1,405,260 | 1,539,640 | 1,494,030 | 1,338,300 | 1,212,220 | 1,293,890 |
| Total current liabilities | US$ in thousands | 991,503 | 1,161,380 | 890,876 | 710,288 | 531,584 | 555,512 | 875,672 | 915,992 | 968,448 | 975,000 | 875,000 | 770,000 | 760,000 |
| Working capital turnover | 5.78 | 4.51 | 3.71 | 3.61 | 3.09 | 3.68 | 5.72 | 7.05 | 5.85 | 5.96 | 5.77 | 5.08 | 3.60 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,451,170K ÷ ($1,761,860K – $991,503K)
= 5.78
Dream Finders Homes Inc's working capital turnover has exhibited fluctuations over the analyzed period. The turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
Based on the provided data, the working capital turnover ratio increased steadily from December 31, 2021, to a peak of 7.05 on March 31, 2023. This uptrend indicates that Dream Finders Homes Inc improved its ability to generate sales relative to its working capital during this period.
However, after reaching the peak, the working capital turnover ratio declined gradually, fluctuating between 3.09 and 5.85 until December 31, 2024. The decreasing trend suggests that the company may have faced challenges in maintaining the same level of efficiency in turning working capital into revenue post-March 31, 2023.
The working capital turnover ratio is a crucial metric as it reflects the company's liquidity and operational efficiency. Dream Finders Homes Inc should continue monitoring and managing its working capital effectively to ensure sustainable growth and profitability in the future.
Peer comparison
Dec 31, 2024