Dream Finders Homes Inc (DFH)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	422,289	344,204	149,260
Interest expense	US$ in thousands	27,312	32	672
Interest coverage		15.46	10,756.38	222.11

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $422,289K ÷ $27,312K
= 15.46

The interest coverage ratio for Dream Finders Homes Inc has shown significant fluctuations over the past three years. In 2021, the company's interest coverage was 222.11, reflecting a strong ability to cover its interest payments. However, this ratio dropped drastically to 10,756.38 in 2022, which seems unusual and may be attributed to irregular financial data or reporting errors. In 2023, the interest coverage ratio went back to a more reasonable level of 15.46, indicating that the company's ability to cover its interest expenses improved compared to the previous year. It is essential for investors and stakeholders to further investigate the unusual spike in the interest coverage ratio in 2022 to understand the true financial health and performance of Dream Finders Homes Inc.