DR Horton Inc (DHI)

Inventory turnover

		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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	26,538,500	26,110,000	25,190,300	23,927,800	23,361,500	22,975,900	21,918,100	21,251,400	20,472,400	19,899,200	18,949,500	17,821,600	16,621,500	15,373,200	14,501,200	14,248,100	14,054,000	13,720,900	13,298,500	12,864,100
Inventory	US$ in thousands	24,050,300	22,373,300	22,983,500	22,571,700	22,445,300	21,655,700	21,698,900	19,846,500	18,202,500	16,479,100	16,011,700	14,476,300	13,576,500	12,237,400	12,138,700	12,224,500	11,899,200	11,282,000	11,702,300	11,920,300
Inventory turnover		1.10	1.17	1.10	1.06	1.04	1.06	1.01	1.07	1.12	1.21	1.18	1.23	1.22	1.26	1.19	1.17	1.18	1.22	1.14	1.08

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $26,538,500K ÷ $24,050,300K
= 1.10

Inventory turnover indicates how efficiently a company manages its inventory by measuring the number of times it sells and replaces its inventory during a specific period. D.R. Horton Inc.'s inventory turnover has fluctuated in recent quarters, ranging from 1.01 to 1.17. A higher inventory turnover generally indicates efficient inventory management, as the company is selling its products quickly and replenishing its inventory effectively. Conversely, a lower turnover may signal overstocking or slow sales. Analyzing the trend, it's noted that the inventory turnover increased from 1.01 in March 2022 to 1.17 in September 2023, which signifies a positive change in managing inventory. However, it dropped to 1.10 in December 2023 from the previous quarter, indicating a slight decline in inventory efficiency. Overall, D.R. Horton's inventory turnover shows fluctuations, warranting further investigation into the company's inventory management and sales performance.