Dream Finders Homes Inc (DFH)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Long-term debt	US$ in thousands	—	—	—
Total stockholders’ equity	US$ in thousands	924,584	800,693	556,383
Debt-to-capital ratio		0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $924,584K)
= 0.00

The debt-to-capital ratio for Dream Finders Homes Inc for the years ending December 31, 2023, 2022, and 2021, is 0.00, indicating that the company has not used any debt to finance its operations and investments relative to its total capital structure in those years. A debt-to-capital ratio of 0.00 suggests that the company's capital is entirely comprised of equity, with no reliance on borrowed funds. This could indicate a conservative financial strategy where the company has chosen to fund its operations and growth using equity financing rather than taking on debt. While having a low or zero debt-to-capital ratio can be positive as it signifies lower financial risk, it's important to consider that this may also limit the company's ability to leverage debt for potential growth opportunities. Additionally, a consistently low debt-to-capital ratio could imply lower financial leverage and potentially lower returns on equity for shareholders.