DR Horton Inc (DHI)

Working capital turnover

Sep 30, 2024 Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020
Revenue US$ in thousands 36,801,400 35,460,400 33,480,000 27,774,200 20,311,100
Total current assets US$ in thousands 7,016,400 6,373,600 4,930,500 5,240,400 4,548,500
Total current liabilities US$ in thousands 77,600 69,200 60,100 51,000 44,100
Working capital turnover 5.30 5.62 6.87 5.35 4.51

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $36,801,400K ÷ ($7,016,400K – $77,600K)
= 5.30

DR Horton Inc's working capital turnover has fluctuated over the past five years. The ratio indicates the company's ability to efficiently utilize its working capital to generate revenue. A higher working capital turnover ratio suggests that the company is effectively managing its working capital and generating sales from its current assets.

In 2022, DR Horton Inc experienced the highest working capital turnover of 6.87, indicating that the company efficiently converted its working capital into revenue during that period. However, there was a slight decrease in the ratio in 2023 and a more significant decline in 2024 to 5.30, which may indicate potential inefficiencies in working capital management during those periods.

Overall, the trend in DR Horton Inc's working capital turnover shows variability, suggesting that the company's working capital efficiency has not been consistent over the years. Further analysis of the company's working capital management practices and operational efficiency may help in understanding the fluctuations in the working capital turnover ratio.