Dream Finders Homes Inc (DFH)

Financial leverage ratio

		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
Total assets	US$ in thousands	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	1,232,580	932,282	866,722
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
Financial leverage ratio		2.98	2.85	2.80	2.77	2.42	2.49	2.71	2.96	3.19	3.26	3.34	3.40	2.47	2.83	2.89

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,324,660K ÷ $1,115,070K
= 2.98

The financial leverage ratio of Dream Finders Homes Inc has fluctuated over the past year. The ratio indicates the company's level of debt relative to its equity capital. A higher financial leverage ratio typically suggests higher financial risk and greater reliance on debt financing.

Looking at the trend over the past year, we see that the financial leverage ratio has generally been increasing from the third quarter of 2021 to the second quarter of 2022, indicating a rising proportion of debt to equity during that period. This trend peaked in the first quarter of 2022 at 3.40, possibly indicating a more aggressive use of debt financing by the company.

However, from the first quarter of 2022 onwards, there has been a gradual decrease in the financial leverage ratio, suggesting a decrease in the company's reliance on debt financing relative to equity. By the third quarter of 2024, the ratio had reached 2.98, which is lower than the peak seen in the first quarter of 2022 but still higher compared to the previous year's levels.

Overall, the fluctuation in the financial leverage ratio of Dream Finders Homes Inc over the past year indicates potential shifts in the company's capital structure and financing strategy. It will be important to continue monitoring this ratio to assess the company's financial risk and sustainability in the future.