Dream Finders Homes Inc (DFH)

Return on total capital

		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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	1,115,070	1,047,490	968,709	924,584	986,072	919,479	850,475	800,693	716,372	647,155	595,792	556,383	499,904	329,403	300,200
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%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,118,821K ÷ ($—K + $1,115,070K)
= 100.34%

Dream Finders Homes Inc has demonstrated varying levels of return on total capital over the past few quarters. The return on total capital has shown an upward trend overall, starting at 26.83% in December 2021 and reaching a peak of 100.34% in September 2024. This indicates that the company has been effectively utilizing its capital to generate profits for its shareholders.

The return on total capital peaked in September 2024, suggesting that the company's capital investments were particularly efficient during that period. However, there was a slight decrease in the following quarter, with the return dropping to 40.23%. Despite this decline, the return on total capital remained relatively strong compared to previous quarters.

Overall, Dream Finders Homes Inc's performance in terms of return on total capital has been positive, indicating effective management of capital resources to generate returns for investors. Investors and stakeholders may view the company favorably based on its ability to generate significant returns on the capital employed in its operations.