Dream Finders Homes Inc (DFH)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.78 | 3.28 | 1.59 | 1.70 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,761,860K ÷ $991,503K
= 1.78
The current ratio for Dream Finders Homes Inc has shown some fluctuations over the years, ranging from 1.59 to 3.28.
In 2021, the current ratio was at 1.70, indicating that the company had $1.70 in current assets for every $1 in current liabilities. This suggests a relatively healthy liquidity position to cover short-term obligations.
By the end of 2022, the current ratio decreased slightly to 1.59. While still above 1, indicating the company's ability to meet short-term liabilities, the decline may warrant monitoring to ensure efficient management of current assets and liabilities.
A significant improvement was observed by the end of 2023, with the current ratio surging to 3.28. This sharp increase indicates a substantial increase in current assets relative to current liabilities, potentially signaling a stronger liquidity position for the company.
However, by December 2024, the current ratio decreased to 1.78. Although still above 1, the decline from the previous year raises questions about the company's ability to cover short-term obligations efficiently. This trend may require further analysis to understand the underlying factors impacting the company's liquidity position.
Overall, while the company has maintained current ratios above 1 in all years, the fluctuations in the ratio highlight the importance of closely monitoring liquidity management to ensure the company can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024