Dream Finders Homes Inc (DFH)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 2,301,231 1,118,821 421,395 410,218 411,144 387,870 359,660 351,454 344,204 297,941 241,184 188,288 149,260
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 1,244,920 1,115,070 1,047,490 968,709 924,584 986,072 919,479 850,475 800,693 716,372 647,155 595,792 556,383
Return on total capital 184.85% 100.34% 40.23% 42.35% 44.47% 39.33% 39.12% 41.32% 42.99% 41.59% 37.27% 31.60% 26.83%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,301,231K ÷ ($—K + $1,244,920K)
= 184.85%

Dream Finders Homes Inc has shown a consistent improvement in its Return on Total Capital over the analyzed period. The ratio has steadily increased from 26.83% as of December 31, 2021, to a significant 184.85% by December 31, 2024. Particularly noteworthy is the exceptional surge in the ratio to 100.34% as of September 30, 2024, and the subsequent extraordinary rise to 184.85% by the end of December 2024. This exceptional performance indicates that the company has been effectively utilizing its total capital to generate profits and create value for its stakeholders. Further trend monitoring will be crucial to assess the sustainability of this remarkable growth in Return on Total Capital.