Dream Finders Homes Inc (DFH)

Cash ratio

		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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Cash and cash equivalents	US$ in thousands	204,906	274,797	239,428	494,145	330,129	292,510	266,569	364,531	123,692	84,097	100,140	227,227	90,211	34,009	69,565
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	14,008	11,440	14,188	14,480	0	—	—	—
Total current liabilities	US$ in thousands	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	440,000	365,000	320,000
Cash ratio		0.18	0.31	0.34	0.93	0.59	0.33	0.29	0.39	0.14	0.11	0.15	0.30	0.21	0.09	0.22

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($204,906K + $—K) ÷ $1,161,380K
= 0.18

The cash ratio of Dream Finders Homes Inc has displayed fluctuations over the past several quarters. The cash ratio measures the proportion of a company's cash and cash equivalents to its current liabilities, providing insight into its ability to cover immediate obligations.

In analyzing the trend of Dream Finders Homes Inc's cash ratio, we observe a significant decline from 0.93 in December 2023 to 0.18 in September 2024. This indicates a substantial decrease in the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

Moreover, the cash ratio has generally been below 1, suggesting that Dream Finders Homes Inc may have limited liquidity in relation to its current obligations. It is important for the company to closely monitor and manage its cash position to ensure it can meet its short-term financial requirements.

Further, the fluctuations in the cash ratio highlight the importance of a robust cash management strategy to maintain liquidity and financial stability. Dream Finders Homes Inc may need to consider optimizing its working capital management and cash flow generation to improve its cash ratio and enhance its overall financial health in the future.