DR Horton Inc (DHI)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 6.81 | 5.62 | 6.03 | 6.55 | 7.77 | 6.87 | 8.65 | 7.86 | 6.81 | 5.35 | 7.35 | 6.14 | 5.76 | 4.51 | 4.96 | 6.42 | 7.01 | 6.89 | 9.52 | 11.75 |
The inventory turnover ratio for D.R. Horton Inc. has fluctuated between 1.01 and 1.17 over the past eight quarters, indicating that the company has been able to effectively manage its inventory levels to generate sales. However, the fluctuations in the ratio may suggest varying levels of efficiency in managing its inventory during this period.
The receivables turnover ratio has shown a general upward trend from around 96 to 122 over the same period, indicating that the company has been collecting its receivables more efficiently, with a significant increase in the most recent quarter.
The payables turnover ratio has ranged between 14.54 and 21.06, displaying some variability in the company's ability to manage its payments to suppliers. This suggests that the company has been able to effectively manage its payments to suppliers, with some variability in the most recent quarters.
The working capital turnover has gradually declined from 1.63 to 1.45 over the past eight quarters, indicating that the company has been less efficient in using its working capital to generate sales, which may warrant further investigation into its capital management strategies.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 330.78 | 312.76 | 333.02 | 344.31 | 350.69 | 344.03 | 361.35 | 340.87 | 324.53 | 302.27 | 308.41 | 296.49 | 298.13 | 290.55 | 305.54 | 313.16 | 309.04 | 300.12 | 321.19 | 338.22 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
To analyze D.R. Horton Inc.'s activity ratios, we can look at the days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables.
The DOH measures how many days, on average, inventory is held before being sold. Over the eight quarters provided, the DOH has ranged from 312.76 to 361.35 days. In the latest quarter, the DOH was 330.78 days. This indicates that, on average, the company holds its inventory for approximately 331 days before selling it.
The DSO represents the average number of days it takes for the company to collect payment after a sale is made. D.R. Horton Inc.'s DSO has varied from 3.00 to 3.80 days over the same period. In the most recent quarter, the DSO was 3.00 days, indicating that the company collects payment from its customers very efficiently, within an average of 3 days.
The number of days of payables measures the average number of days the company takes to pay its suppliers. This ratio has fluctuated between 17.33 and 25.10 days, with the latest figure standing at 17.33 days. A lower number of days of payables suggests that the company is paying its suppliers more quickly.
Overall, D.R. Horton Inc. seems to be managing its inventory efficiently, collecting payments swiftly from customers, and paying its suppliers relatively promptly. These activity ratios are important in understanding the company's operational efficiency and its ability to manage cash flow effectively.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 75.56 | 79.61 | 81.34 | 66.05 | 67.14 | 70.99 | 66.38 | 70.15 | 70.40 | 70.69 | 71.02 | 27.01 | 29.70 | 29.71 | 29.99 | 31.31 | 32.12 | 35.24 | 37.56 | 37.88 |
| Total asset turnover | 1.08 | 1.09 | 1.07 | 1.08 | 1.11 | 1.10 | 1.11 | 1.14 | 1.16 | 1.16 | 1.20 | 1.15 | 1.12 | 1.07 | 1.05 | 1.08 | 1.11 | 1.13 | 1.12 | 1.11 |
The fixed asset turnover ratio for D.R. Horton Inc. has ranged from 66.05 to 81.34 over the past eight quarters, indicating the company's ability to generate sales from its investment in fixed assets. The steady increase in this ratio suggests that the company has become more efficient in utilizing its fixed assets to generate revenue.
In contrast, the total asset turnover ratio has fluctuated between 1.07 and 1.14 during the same period. This ratio measures the company's ability to generate sales from its total assets. The slight fluctuations in this ratio suggest that the company's overall efficiency in utilizing its total assets to generate revenue has remained relatively stable.
Overall, the fixed asset turnover ratio indicates a consistent improvement in the company's efficiency in utilizing its fixed assets, while the total asset turnover ratio suggests a relatively stable performance in generating sales from its total assets. These ratios demonstrate D.R. Horton Inc.'s effective management of its assets to drive revenue growth.