Dream Finders Homes Inc (DFH)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 422,289 | 344,204 | 149,260 |
| Long-term debt | US$ in thousands | — | — | — |
| Total stockholders’ equity | US$ in thousands | 924,584 | 800,693 | 556,383 |
| Return on total capital | 45.67% | 42.99% | 26.83% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $422,289K ÷ ($—K + $924,584K)
= 45.67%
Dream Finders Homes Inc has demonstrated a consistent improvement in its return on total capital over the three-year period from 2021 to 2023. The return on total capital increased from 26.83% in 2021 to 42.99% in 2022, and further improved to 45.67% in 2023. This indicates the company's effective utilization of both debt and equity to generate profits. A rising trend in return on total capital suggests that Dream Finders Homes Inc is becoming more efficient in deploying its capital to generate earnings, potentially reflecting sound financial management and operational performance. Overall, the increasing return on total capital signifies the company's ability to generate higher returns for its investors and stakeholders.
Peer comparison
Dec 31, 2023