DR Horton Inc (DHI)

Working capital 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
Revenue (ttm)	US$ in thousands	35,928,500	35,460,300	34,595,700	33,658,200	33,684,300	33,479,900	31,949,800	30,446,300	28,894,200	27,774,200	26,065,300	24,170,700	22,223,800	20,311,100	18,949,600	18,465,900	18,094,600	17,592,900	17,059,200	16,588,200
Total current assets	US$ in thousands	5,323,400	6,373,600	5,789,100	5,175,100	4,371,100	4,930,500	3,738,200	3,903,900	4,272,100	5,240,400	3,582,700	3,965,200	3,893,800	4,548,500	3,853,500	2,902,200	2,608,400	2,594,300	1,819,100	1,495,300
Total current liabilities	US$ in thousands	49,500	69,200	48,300	34,900	38,000	60,100	42,600	30,900	32,200	51,000	37,800	27,000	32,600	44,100	30,200	23,800	28,100	40,100	27,300	83,000
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $35,928,500K ÷ ($5,323,400K – $49,500K)
= 6.81

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. D.R. Horton Inc.'s working capital turnover ratio has been fluctuating over the past eight quarters, ranging from a high of 1.63 in March 2022 to a low of 1.44 in June 2023.

The declining trend in the working capital turnover ratio indicates that the company is taking longer to generate sales from its working capital. This could suggest inefficiency in managing its working capital, potentially leading to increased carrying costs and a potential strain on the company's liquidity.

However, it's important to note that a single ratio does not provide a complete picture of a company's financial health, and additional analysis of D.R. Horton Inc.'s liquidity, profitability, and operational efficiency would be necessary to fully assess its financial performance and management of working capital.