Dream Finders Homes Inc (DFH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Gross profit margin | 19.65% | 18.56% | 16.30% |
| Operating profit margin | 11.27% | 10.51% | 7.60% |
| Pretax margin | 10.47% | 10.30% | 7.72% |
| Net profit margin | 7.89% | 7.85% | 6.30% |
Dream Finders Homes Inc has shown a positive trend in its profitability ratios over the past three years. The gross profit margin has improved steadily from 16.30% in 2021 to 19.65% in 2023, indicating efficient cost management and pricing strategies. The operating profit margin has also shown consistent growth, rising from 7.60% in 2021 to 11.27% in 2023, reflecting improved operational efficiency.
Furthermore, the pretax margin has increased from 7.72% in 2021 to 10.47% in 2023, suggesting better control over expenses and higher revenue generation. The net profit margin has also seen a positive trend, climbing from 6.30% in 2021 to 7.89% in 2023, indicating effective management of taxes and interest expenses.
Overall, Dream Finders Homes Inc's profitability ratios suggest a healthy financial performance, with increasing margins year over year. This demonstrates the company's ability to generate profits and manage costs effectively, which bodes well for its financial stability and growth prospects.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.48% | 14.81% | 7.72% |
| Return on assets (ROA) | 11.55% | 11.06% | 6.39% |
| Return on total capital | 45.67% | 42.99% | 26.83% |
| Return on equity (ROE) | 32.00% | 32.76% | 21.77% |
Dream Finders Homes Inc's profitability ratios have shown consistent improvement over the past three years, indicating strong performance and efficient management of its assets and capital.
The Operating Return on Assets (Operating ROA) has increased from 7.72% in 2021 to 16.48% in 2023, reflecting the company's ability to generate earnings from its operating activities relative to its total assets. This indicates that Dream Finders Homes Inc has become more efficient in utilizing its assets to generate operating profits.
The Return on Assets (ROA) has also exhibited an upward trend, rising from 6.39% in 2021 to 11.55% in 2023. This ratio measures the overall profitability of the company's assets, including both operating and non-operating income. The increasing ROA suggests that Dream Finders Homes Inc is generating more profits relative to its total assets.
Dream Finders Homes Inc's Return on Total Capital has significantly increased from 26.83% in 2021 to 45.67% in 2023. This ratio indicates the company's ability to generate returns for both equity and debt holders. The upward trend in this ratio signifies that the company is effectively utilizing its total capital to generate profits.
Furthermore, the Return on Equity (ROE) has shown consistent improvement over the years, rising from 21.77% in 2021 to 32.00% in 2023. This ratio measures the return generated on shareholders' equity, indicating the profitability of the company from the shareholders' perspective. The increasing ROE reflects Dream Finders Homes Inc's ability to generate higher profits for its equity investors.
Overall, the upward trend in Dream Finders Homes Inc's profitability ratios demonstrates the company's strong financial performance and effective management of assets and capital, making it an attractive investment opportunity for potential stakeholders.