Dream Finders Homes Inc (DFH)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,328,650 | 2,562,440 | 2,371,140 | 1,894,250 |
| Total stockholders’ equity | US$ in thousands | 1,244,920 | 924,584 | 800,693 | 556,383 |
| Financial leverage ratio | 2.67 | 2.77 | 2.96 | 3.40 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,328,650K ÷ $1,244,920K
= 2.67
The financial leverage ratio for Dream Finders Homes Inc has exhibited a decreasing trend over the period from December 31, 2021, to December 31, 2024. The ratio stood at 3.40 on December 31, 2021, indicating that the company's debt levels were 3.40 times its equity levels.
However, in subsequent years, there has been a noticeable decline in the financial leverage ratio. By December 31, 2024, the ratio had decreased to 2.67, suggesting an improvement in the company's financial structure.
A decreasing financial leverage ratio signifies that Dream Finders Homes Inc is relying less on debt financing relative to equity financing. This trend can be viewed positively as lower leverage ratios generally indicate lower financial risk and greater financial stability for the company.
Overall, the declining trend in the financial leverage ratio for Dream Finders Homes Inc indicates a strengthening financial position and a healthier balance between debt and equity in its capital structure over the evaluated period.
Peer comparison
Dec 31, 2024