Dream Finders Homes Inc (DFH)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 2,301,231 1,118,821 421,395 425,458 427,637 410,498 381,769 363,778 356,981 307,293 249,813 188,960 148,087
Total assets US$ in thousands 3,328,650 3,324,660 2,985,200 2,716,930 2,562,440 2,384,050 2,288,230 2,308,800 2,371,140 2,287,260 2,112,790 1,992,470 1,894,250
Operating ROA 69.13% 33.65% 14.12% 15.66% 16.69% 17.22% 16.68% 15.76% 15.06% 13.43% 11.82% 9.48% 7.82%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $2,301,231K ÷ $3,328,650K
= 69.13%

Dream Finders Homes Inc's operating return on assets (Operating ROA) has exhibited an increasing trend over the analyzed periods, indicating an improvement in the company's operational efficiency and profitability with respect to its assets. The Operating ROA rose from 7.82% as of December 31, 2021, to a peak of 69.13% by the end of December 31, 2024. The drastic spike in Operating ROA in the fourth quarter of 2024 to 69.13% suggests a significant boost in the company's operational performance relative to its asset base during that period.

It is essential to further investigate the factors contributing to this exceptional performance in the last quarter of 2024 to understand if it is sustainable or driven by temporary factors. Additionally, the consistency and stability of the Operating ROA in the preceding quarters indicate Dream Finders Homes Inc's ability to generate profits from its operations efficiently relative to its assets, reflecting positively on its overall financial health.

Overall, the increasing trend in Operating ROA showcases the company's effectiveness in utilizing its assets to generate profits, making it an important metric for investors and stakeholders to assess the company's operational performance over time.