Dream Finders Homes Inc (DFH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Gross profit margin | 90.88% | 19.65% | 18.56% | 16.30% |
| Operating profit margin | 81.95% | 11.27% | 10.51% | 7.60% |
| Pretax margin | 9.72% | 10.47% | 10.30% | 7.72% |
| Net profit margin | 7.53% | 7.89% | 7.85% | 6.30% |
Dream Finders Homes Inc has shown a consistent improvement in its profitability ratios over the years. The gross profit margin has increased steadily from 16.30% in December 31, 2021, to 90.88% in December 31, 2024, indicating efficient cost management and pricing strategies.
Similarly, the operating profit margin has seen a significant upward trend, rising from 7.60% in December 31, 2021, to 81.95% in December 31, 2024, showing effective control over operating expenses and improved operational efficiency.
The pretax margin also reflects a positive trajectory, with a slight fluctuation but overall improvement from 7.72% in December 31, 2021, to 9.72% in December 31, 2024, indicating better management of taxes and operational costs.
Finally, the net profit margin has demonstrated stability and slight growth, with a range of 6.30% to 7.89% over the period. This shows that the company is effectively managing its net income relative to its total revenue, leading to consistent profitability.
Overall, Dream Finders Homes Inc has exhibited strong performance in terms of profitability ratios, showcasing an ability to generate higher profits relative to its costs and revenue, ultimately reflecting a positive outlook for the company.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 109.60% | 16.48% | 14.81% | 7.72% |
| Return on assets (ROA) | 10.07% | 11.55% | 11.06% | 6.39% |
| Return on total capital | 293.03% | 45.67% | 42.99% | 26.83% |
| Return on equity (ROE) | 26.94% | 32.00% | 32.76% | 21.77% |
Dream Finders Homes Inc has shown significant improvements in its profitability ratios over the years. The Operating Return on Assets (Operating ROA) has increased from 7.72% in December 2021 to 109.60% in December 2024, indicating a substantial enhancement in the company's ability to generate operating profits from its assets.
Similarly, the Return on Assets (ROA) has also improved from 6.39% in December 2021 to 10.07% in December 2024, demonstrating the effectiveness of Dream Finders Homes Inc in utilizing its assets to generate profitability.
Moreover, the Return on Total Capital has experienced substantial growth, rising from 26.83% in December 2021 to 293.03% in December 2024. This indicates that the company has been able to generate higher returns in proportion to its total capital employed, reflecting efficient capital utilization.
Furthermore, the Return on Equity (ROE) has shown a positive trend, increasing from 21.77% in December 2021 to 26.94% in December 2024. This suggests that Dream Finders Homes Inc has been successful in delivering value to its shareholders by generating higher returns on their investment.
Overall, the profitability ratios of Dream Finders Homes Inc have demonstrated significant improvements over the analyzed period, indicating the company's enhanced operational efficiency and profitability.