Dream Finders Homes Inc (DFH)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 274,384 | 204,906 | 274,797 | 239,428 | 494,145 | 330,129 | 292,510 | 266,569 | 364,531 | 123,692 | 84,097 | 100,140 | 227,227 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 14,008 | 11,440 | 14,188 | 14,480 | 0 |
| 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 |
| Cash ratio | 0.28 | 0.18 | 0.31 | 0.34 | 0.93 | 0.59 | 0.33 | 0.29 | 0.39 | 0.14 | 0.11 | 0.15 | 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 improved significantly over the period from December 31, 2021, to December 31, 2024. The ratio stood at 0.30 on December 31, 2021, indicating that the company had $0.30 in cash and cash equivalents for every $1 of current liabilities.
There was a noticeable decrease in the cash ratio by March 31, 2022, which might suggest a temporary decrease in cash reserves or an increase in current liabilities. However, the ratio improved again by June 30, 2022, although it remained relatively low compared to the previous year-end figure.
Subsequently, the cash ratio continued to fluctuate over the next few quarters, showing some inconsistency in the company's ability to cover its short-term obligations with its available cash. Notably, by December 31, 2023, the cash ratio spiked to 0.93, indicating a significant improvement in the company's liquidity position.
By the end of the period on December 31, 2024, the cash ratio decreased to 0.28. Although lower than the peak in December 2023, the ratio remained higher than the levels observed in the earlier periods, suggesting that Dream Finders Homes Inc had a strong cash position relative to its current liabilities.
Overall, the trend in the cash ratio of Dream Finders Homes Inc reflects fluctuations in the company's liquidity position over the analyzed period, with some quarters showing a strong ability to cover short-term obligations with cash, while others indicating potential liquidity challenges.
Peer comparison
Dec 31, 2024