DR Horton Inc (DHI)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.09 | 1.08 | 1.10 | 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 5.30 | 6.74 | 6.51 | 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 |
DR Horton Inc's inventory turnover has been relatively stable over the past few quarters, ranging from 1.01 to 1.23. This indicates that the company is managing its inventory efficiently, with a moderate level of sales relative to its inventory levels.
The receivables turnover and payables turnover ratios are not available in the provided data, so it is unclear how quickly the company collects its receivables or pays its suppliers.
The working capital turnover ratio has fluctuated over the quarters, showing a range from 4.51 to 8.65. A higher working capital turnover ratio typically indicates that the company is generating more revenue per dollar of working capital invested. This suggests that DR Horton Inc has been effectively utilizing its working capital to generate sales, though the fluctuations may warrant further investigation into the company's operational efficiency and capital management strategies.
Average number of days
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 333.37 | 338.95 | 331.91 | 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 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The days of inventory on hand (DOH) ratio measures how many days on average it takes for a company to sell its inventory. A higher DOH indicates slower inventory turnover and potentially inefficient inventory management. Looking at the trend for DR Horton Inc over the past few quarters, there seems to be some fluctuation but generally, the days of inventory on hand have been on the higher side, ranging from around 290 to 360 days. This suggests that DR Horton Inc may be holding onto its inventory for a relatively long time before turning it into sales.
The days of sales outstanding (DSO) ratio, which measures how long it takes a company to collect payment after a sale, is not provided in the data. Without this information, it is difficult to assess DR Horton Inc's efficiency in collecting receivables.
Similarly, the number of days of payables ratio, which shows how long it takes a company to pay its suppliers, is also not available in the data. This ratio is essential in understanding how well a company manages its payables and cash flow.
Overall, based on the available information, DR Horton Inc may need to focus on improving its inventory turnover to avoid potential issues related to holding excess inventory for extended periods.
Long-term
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 69.31 | 71.61 | 77.23 | 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 |
| Total asset turnover | 1.02 | 1.06 | 1.08 | 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 |
DR Horton Inc's fixed asset turnover ratio has been relatively stable over the past few quarters, ranging between 66.05 to 81.34 times. This indicates that the company is generating sales efficiently from its fixed assets such as property, plant, and equipment. A higher fixed asset turnover ratio suggests that DR Horton is effectively utilizing its fixed assets to generate revenue.
In comparison, the total asset turnover ratio has also shown consistency, with fluctuations between 1.02 to 1.20 times. This ratio reflects how efficiently the company is using all its assets to generate sales. The higher the total asset turnover ratio, the better the company is at generating sales from its total assets.
Overall, both the fixed asset turnover and total asset turnover ratios suggest that DR Horton Inc is effectively utilizing its assets to generate revenue. This efficient use of assets bodes well for the company's operational efficiency and profitability.