Dream Finders Homes Inc (DFH)

Financial leverage ratio

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
Total assets US$ in thousands 3,328,650 3,324,660 2,985,200 2,716,930 2,562,440 2,384,050 2,288,230 2,308,800 2,371,140 2,287,260 2,112,790 1,992,470 1,894,250
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
Financial leverage ratio 2.67 2.98 2.85 2.80 2.77 2.42 2.49 2.71 2.96 3.19 3.26 3.34 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 of Dream Finders Homes Inc has shown a gradual decreasing trend over the past few years, starting at 3.40 as of December 31, 2021, and decreasing to 2.67 by December 31, 2024. This downward trend indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that the company is less reliant on debt financing and may have a stronger financial position, as it indicates lower financial risk and higher equity financing relative to debt. However, it's important for the company to maintain a balance between debt and equity financing to support growth and profitability while managing financial risks effectively.