Dream Finders Homes Inc (DFH)

Current 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
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
Current ratio		1.78	1.77	2.19	2.48	3.28	2.82	1.72	1.53	1.59	1.53	1.53	1.57	1.70

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,761,860K ÷ $991,503K
= 1.78

Dream Finders Homes Inc's current ratio has exhibited fluctuations over the reporting periods. The trend shows that the company's ability to meet its short-term obligations with its current assets has varied.

As of December 31, 2021, the current ratio was 1.70, indicating that Dream Finders Homes had $1.70 in current assets for every dollar of current liabilities. The ratio decreased to 1.57 by March 31, 2022, and continued to decline to 1.53 by both June 30, 2022, and September 30, 2022.

There was a slight increase to 1.59 by December 31, 2022, but the ratio dropped again to 1.53 by March 31, 2023. However, there was an improvement in the current ratio to 1.72 by June 30, 2023, followed by a significant increase to 2.82 by September 30, 2023, and a further rise to 3.28 by December 31, 2023.

The current ratio then experienced a slight decline to 2.48 by March 31, 2024, and further decreased to 2.19 by June 30, 2024. It declined to 1.77 by September 30, 2024, and remained almost stable at 1.78 by December 31, 2024.

Overall, the current ratio trend indicates fluctuations, with both improvements and declines seen in different periods. A current ratio above 1 suggests that Dream Finders Homes had more current assets than current liabilities during most reporting periods, which is generally considered favorable in terms of short-term liquidity. However, the company should continue monitoring its liquidity position to ensure it can meet its short-term obligations efficiently.