Dream Finders Homes Inc (DFH)
Quick 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 | 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 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($274,384K
+ $—K
+ $—K)
÷ $991,503K
= 0.28
The quick ratio of Dream Finders Homes Inc, a measure of its short-term liquidity and ability to meet immediate obligations, has shown fluctuations over the period from December 31, 2021, to December 31, 2024.
The quick ratio started at a relatively low level of 0.30 as of December 31, 2021, indicating that the company had $0.30 of liquid assets available to cover each $1 of current liabilities. However, the quick ratio decreased significantly to 0.15 as of March 31, 2022, suggesting a potential strain on the company's ability to meet its short-term obligations promptly.
The trend continued with a further decrease to 0.11 as of June 30, 2022, reaching a concerning level. However, there was a slight improvement in the quick ratio to 0.14 as of September 30, 2022. The ratio experienced a significant recovery to 0.39 as of December 31, 2022, indicating a better financial position in terms of short-term liquidity.
Subsequently, the quick ratio continued to fluctuate over the next few quarters, with values of 0.29, 0.33, and 0.59 as of March 31, 2023, June 30, 2023, and September 30, 2023, respectively. These variations suggest that the company's ability to cover its short-term liabilities improved during this period.
As of December 31, 2023, the quick ratio increased substantially to 0.93, indicating a strong liquidity position and the ability to meet short-term obligations comfortably. However, the quick ratio dropped to 0.34 as of March 31, 2024, and further declined to 0.31 as of June 30, 2024, signaling a potential decrease in short-term liquidity.
The quick ratio continued to fluctuate in the following quarters, with values of 0.18 and 0.28 as of September 30, 2024, and December 31, 2024, respectively. These fluctuations indicate that the company's short-term liquidity position remained volatile during the analyzed period.
Overall, the quick ratio of Dream Finders Homes Inc exhibited fluctuations, ranging from relatively low levels of liquidity to periods of improved liquidity, reflecting the company's changing ability to cover its short-term obligations with readily available liquid assets. Additional analysis integrating other financial metrics and contextual factors would provide a more holistic understanding of the company's financial health and liquidity management.
Peer comparison
Dec 31, 2024