DR Horton Inc (DHI)

Payables 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
Payables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover		—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $26,538,500K ÷ $—K
= —

The payables turnover ratio measures how efficiently a company manages its accounts payable by analyzing how many times a company pays off its average accounts payable balance during a period. For D.R. Horton Inc., the payables turnover ratio has shown fluctuations over the past eight quarters, ranging from a low of 14.54 to a high of 21.06.

The trend indicates that D.R. Horton Inc. has improved its efficiency in managing its accounts payable, with the ratio generally increasing over the period. A higher payables turnover ratio suggests that the company is paying off its suppliers or creditors more frequently, indicating better liquidity and potentially favorable payment terms.

The increasing trend in the payables turnover ratio could imply that the company is effectively managing its cash flow by promptly settling its payables, potentially allowing for better relationships with suppliers and reducing the risk of late payment penalties. However, it's important to consider the overall financial health and strategy of the company before making any definitive conclusions based solely on this ratio.