Dream Finders Homes Inc (DFH)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 274,384 | 494,145 | 364,531 | 227,227 |
| Short-term investments | US$ in thousands | — | 54,311 | 14,008 | 0 |
| Total current liabilities | US$ in thousands | 991,503 | 531,584 | 968,448 | 760,000 |
| Cash ratio | 0.28 | 1.03 | 0.39 | 0.30 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($274,384K
+ $—K)
÷ $991,503K
= 0.28
The cash ratio of Dream Finders Homes Inc has exhibited fluctuations over the years based on the provided data. As of December 31, 2021, the cash ratio stood at 0.30, indicating that the company had $0.30 of cash and cash equivalents for every dollar of current liabilities.
By December 31, 2022, the cash ratio saw an improvement, reaching 0.39. This suggests a slightly better liquidity position compared to the previous year, as the company had $0.39 in cash and cash equivalents for each dollar of current liabilities.
The cash ratio significantly improved by December 31, 2023, reaching 1.03. This sharp increase indicates that Dream Finders Homes Inc had more than enough cash and cash equivalents to cover its current liabilities, reflecting a very strong liquidity position.
However, by December 31, 2024, the cash ratio dropped to 0.28, signaling a decrease in liquidity compared to the previous year. This decrease may raise concerns about the company's ability to cover its short-term liabilities solely with its cash reserves.
In conclusion, while the cash ratio of Dream Finders Homes Inc has shown variability over the years, it is important for the company to maintain adequate liquidity to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024