DR Horton Inc (DHI)

Inventory turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	27,266,000	26,110,000	22,975,900	19,899,200	15,373,200
Inventory	US$ in thousands	24,903,200	22,373,300	21,655,700	16,479,100	12,237,400
Inventory turnover		1.09	1.17	1.06	1.21	1.26

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $27,266,000K ÷ $24,903,200K
= 1.09

DR Horton Inc's inventory turnover has shown a slight decrease over the past five years. The trend indicates that the company is taking longer to sell its inventory compared to previous years. A lower inventory turnover ratio may suggest inefficient inventory management or possible overstocking of inventory. It is important for the company to actively monitor and improve its inventory turnover to ensure optimal utilization of resources and improve overall profitability.