DR Horton Inc (DHI)

Fixed asset turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	35,460,400	33,480,000	27,774,200	20,311,100	17,592,900
Property, plant and equipment	US$ in thousands	445,400	471,600	392,900	683,700	499,200
Fixed asset turnover		79.61	70.99	70.69	29.71	35.24

September 30, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $35,460,400K ÷ $445,400K
= 79.61

The fixed asset turnover ratio measures the efficiency with which D.R. Horton Inc. utilizes its fixed assets to generate sales. The trend of D.R. Horton Inc.'s fixed asset turnover ratio demonstrates an improvement from 2019 to 2023. The ratio has significantly increased from 38.06 in 2019 to 79.61 in 2023. This indicates that the company has become more effective in generating sales relative to its investment in fixed assets. The higher ratio suggests improved asset utilization and efficiency in generating revenues, which can potentially lead to higher profitability. Overall, the trend in the fixed asset turnover ratio reflects positive efficiency and productivity in utilizing fixed assets for sales generation over the years.