Dream Finders Homes Inc (DFH)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 37.05% | 19.77% | 19.80% | 19.65% | 18.63% | 18.11% | 18.19% | 18.56% | 18.41% | 18.05% | 17.21% | 16.30% |
| Operating profit margin | 27.77% | 10.76% | 11.18% | 11.41% | 11.06% | 10.60% | 10.55% | 10.68% | 9.93% | 9.35% | 8.42% | 7.70% |
| Pretax margin | 9.87% | 10.38% | 10.38% | 10.47% | 10.18% | 9.93% | 10.16% | 10.30% | 9.63% | 9.02% | 8.39% | 7.72% |
| Net profit margin | 7.65% | 8.00% | 7.91% | 7.89% | 7.55% | 7.61% | 7.76% | 7.85% | 7.54% | 6.84% | 6.63% | 6.30% |
Dream Finders Homes Inc's profitability ratios have shown improvement over the past few quarters. The gross profit margin has increased steadily from 16.30% in December 2021 to 37.05% in September 2024. This indicates that the company has been able to control its cost of goods sold and improve its pricing strategy, resulting in a higher percentage of revenue retained as gross profit.
Similarly, the operating profit margin has shown an increasing trend, reaching 27.77% in September 2024. This implies that the company has been effectively managing its operating expenses in relation to its revenue, leading to a higher percentage of revenue converted into operating profit.
The pretax margin has fluctuated slightly over the quarters but has generally been stable around 10%. This indicates that the company has been able to maintain consistent profitability before accounting for taxes, which is a positive sign for its overall financial health.
Lastly, the net profit margin has also shown improvement, reaching 7.65% in September 2024. This suggests that the company has been generating higher net income relative to its revenue, indicating efficient cost management and potential growth in profitability.
Overall, Dream Finders Homes Inc's profitability ratios reflect a positive trend, with improvements in gross profit margin, operating profit margin, and net profit margin over the quarters analyzed. This indicates the company's ability to effectively manage costs, generate profits, and enhance overall profitability.
Return on investment
| 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 return on assets (Operating ROA) | 33.65% | 14.12% | 15.66% | 16.69% | 17.22% | 16.68% | 15.76% | 15.06% | 13.43% | 11.82% | 9.48% | 7.82% |
| Return on assets (ROA) | 9.27% | 10.50% | 11.09% | 11.55% | 11.76% | 11.97% | 11.59% | 11.06% | 10.20% | 8.65% | 7.46% | 6.39% |
| Return on total capital | 100.34% | 40.23% | 42.35% | 44.47% | 39.33% | 39.12% | 41.32% | 42.99% | 41.59% | 37.27% | 31.60% | 26.83% |
| Return on equity (ROE) | 27.62% | 29.93% | 31.10% | 32.00% | 28.42% | 29.78% | 31.47% | 32.76% | 32.56% | 28.24% | 24.96% | 21.77% |
Dream Finders Homes Inc's profitability ratios show a positive trend over the past few quarters.
1. Operating return on assets (Operating ROA) has experienced significant improvement, increasing from 7.82% in December 2021 to 33.65% in September 2024. This indicates that the company has become more efficient in generating operating profits from its assets.
2. Return on assets (ROA) has shown some fluctuations but overall has been relatively stable, ranging from 6.39% in December 2021 to 11.76% in September 2023. This ratio reflects the company's ability to generate profits from its total assets.
3. Return on total capital has been fluctuating but generally trending upwards, reaching 100.34% in September 2024. This ratio indicates how effectively the company is utilizing its total capital to generate returns for its investors.
4. Return on equity (ROE) has shown a similar positive trend, increasing from 21.77% in December 2021 to 32.00% in September 2024. This indicates the company's ability to generate profits for its shareholders from the equity invested in the business.
Overall, Dream Finders Homes Inc's profitability ratios demonstrate improvement and efficiency in utilizing assets and capital to generate returns, which suggests positive financial performance and effective management of resources.