Dream Finders Homes Inc (DFH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the solvency ratios of Dream Finders Homes Inc, we can see the following trends:
1. Debt-to-assets ratio: The company consistently maintained a debt-to-assets ratio of 0.00 throughout the periods from December 31, 2021, to December 31, 2024. This indicates that the company's total debt was very low in relation to its total assets during these periods.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio remained at 0.00 from December 31, 2021, to December 31, 2024. This suggests that the company's debt component compared to its total capital (debt + equity) was negligible, indicating a strong financial position and low leverage.
3. Debt-to-equity ratio: The debt-to-equity ratio also stayed constant at 0.00 from December 31, 2021, to December 31, 2024. This ratio demonstrates the proportion of debt relative to equity in the company's capital structure. A ratio of 0.00 signifies that the company had no debt relative to equity during the periods analyzed.
4. Financial leverage ratio: The financial leverage ratio decreased steadily from 3.40 on December 31, 2021, to 2.67 on December 31, 2024. This decreasing trend indicates that Dream Finders Homes Inc reduced its dependence on debt financing over time, as the ratio measures the company's level of debt relative to equity and reflects the company's ability to meet its financial obligations.
In conclusion, based on the solvency ratios provided, Dream Finders Homes Inc maintained a strong financial position with minimal debt levels and decreasing leverage over the analyzed periods, which suggests a healthy solvency position and stable financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 4.63 | 1.15 | 1.12 | 1.12 | 3.06 | 153.83 | 305.35 | 10,756.38 | 9,611.00 | 6,029.60 | 4,378.79 | 222.11 |
The interest coverage ratio for Dream Finders Homes Inc provides an indication of the company's ability to meet its interest obligations using its operating income. From December 31, 2021, to March 31, 2023, the interest coverage ratio for the company exhibited a strong and positive trend, significantly increasing from 222.11 to 305.35. This indicates that the company's operating income was more than sufficient to cover its interest expenses during this period.
However, from June 30, 2023, to December 31, 2024, the interest coverage ratio experienced a significant decline, reaching its lowest point of 1.12 on multiple occasions. This suggests that the company's operating income may have been less able to cover its interest expenses during this period, potentially raising concerns about the company's financial health and ability to honor its debt obligations.
Moreover, the data shows that by September 30, 2024, the interest coverage ratio slightly improved to 4.63, indicating a modest recovery in the company's ability to cover its interest expenses. However, it is important for stakeholders to closely monitor the company's interest coverage in the upcoming periods to assess the sustainability of this improvement and ensure that the company remains financially stable.