Dream Finders Homes Inc (DFH)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 494,145 | 364,531 | 227,227 |
| Short-term investments | US$ in thousands | 54,311 | 14,008 | 0 |
| Receivables | US$ in thousands | — | — | — |
| Total current liabilities | US$ in thousands | 531,584 | 968,448 | 760,000 |
| Quick ratio | 1.03 | 0.39 | 0.30 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($494,145K
+ $54,311K
+ $—K)
÷ $531,584K
= 1.03
The quick ratio of Dream Finders Homes Inc has improved significantly over the past three years. As of December 31, 2023, the quick ratio stands at 1.03, indicating that the company has $1.03 of liquid assets available to cover each $1 of current liabilities. This is a substantial improvement from the quick ratio of 0.39 in 2022 and 0.30 in 2021.
A quick ratio of 1.03 suggests that Dream Finders Homes Inc is in a strong position to meet its short-term obligations using its liquid assets. This improvement indicates better liquidity and financial health for the company as it has increased its ability to meet its immediate financial needs without relying heavily on selling inventory or obtaining external financing.
Overall, the trend of increasing quick ratios over the years indicates that Dream Finders Homes Inc has been managing its liquidity more effectively and is better positioned to handle short-term financial obligations.
Peer comparison
Dec 31, 2023