DR Horton Inc (DHI)

Cash conversion cycle

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
Cash conversion cycle 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

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 333.37 + — – —
= 333.37

The cash conversion cycle of DR Horton Inc, a key indicator of the efficiency of the company's cash flow management, has fluctuated over the past few quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory back into cash.

From December 2019 to September 2020, there was a general increasing trend in the cash conversion cycle, peaking at 361.35 days in June 2022 before showing a slight decrease in the most recent quarter to 333.37 days.

The longer the cash conversion cycle, the longer the company's cash is tied up in the operating cycle, potentially impacting liquidity and profitability. A decreasing trend in the cycle indicates improved efficiency in managing inventory and collections, leading to quicker conversion of sales into cash.

It is important for DR Horton Inc to continuously monitor and optimize its cash conversion cycle to ensure effective management of working capital and sustainable business operations. Maintaining a healthy balance between inventory management, accounts receivable collection, and accounts payable turnover is crucial for the company's financial health and competitiveness in the market.


Peer comparison

Sep 30, 2024