Dream Finders Homes Inc (DFH)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.77 | 2.96 | 3.40 |
The solvency ratios of Dream Finders Homes Inc, as indicated by the table, show a consistent trend of decreasing leverage ratios over the past three years.
The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all stand at 0.00 for each of the years, indicating that the company has not utilized debt to finance its operations when compared to its total assets, capital, or equity.
However, the financial leverage ratio, which measures the company's use of debt in its capital structure, has shown a declining trend from 3.40 in 2021 to 2.77 in 2023. This indicates that the company has been reducing its dependence on debt financing over the years, which could potentially signify improved financial stability and lower financial risk.
Overall, based on the solvency ratios provided, Dream Finders Homes Inc appears to have a strong solvency position, with minimal reliance on debt as a source of financing.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Interest coverage | 15.46 | 10,756.38 | 222.11 |
Dream Finders Homes Inc experienced a significant improvement in its interest coverage ratio over the past three years. The interest coverage ratio, a measure of a company's ability to pay interest expenses on outstanding debt, was 15.46 in 2023, representing a substantial increase from 222.11 in 2021 and 10,756.38 in 2022.
The drastic fluctuations in the interest coverage ratio over the three years may be attributed to significant changes in the company's operating income and interest expenses during this period. It is essential to conduct further analysis to understand the factors contributing to such fluctuations and to assess the sustainability of the company's ability to cover its interest expenses in the future. Overall, the improved interest coverage ratio in 2023 indicates that Dream Finders Homes Inc has enhanced its ability to meet its interest obligations compared to the prior two years.