Dream Finders Homes Inc (DFH)

Return on assets (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
Net income (ttm)	US$ in thousands	335,341	308,038	313,484	301,305	295,900	280,282	273,826	267,686	262,313	233,284	182,778	148,727	121,132
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
ROA		10.07%	9.27%	10.50%	11.09%	11.55%	11.76%	11.97%	11.59%	11.06%	10.20%	8.65%	7.46%	6.39%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $335,341K ÷ $3,328,650K
= 10.07%

The return on assets (ROA) of Dream Finders Homes Inc has shown a generally increasing trend over the analyzed period, starting at 6.39% as of December 31, 2021, and reaching a peak of 11.97% as of June 30, 2023. Following this peak, there was a slight decrease in ROA, but the metric remained relatively stable above 10% until June 30, 2024, where it stood at 10.50%. However, there was a notable decline in ROA to 9.27% by September 30, 2024, before a partial recovery to 10.07% by December 31, 2024.

Overall, Dream Finders Homes Inc's ROA performance reflects improved efficiency in generating profits from its assets during the early part of the analyzed period, with a significant increase occurring between September 30, 2022, and March 31, 2023. The company then experienced challenges in maintaining the highest levels of ROA achieved in mid-2023, likely influenced by changes in the business environment or company-specific factors. The slight decline in ROA towards the end of the period suggests potential areas for management to focus on to sustain or improve the company's profitability relative to its asset base.