DR Horton Inc (DHI)

Cash ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	4,516,400	3,873,600	2,540,500	3,210,400	3,018,500
Short-term investments	US$ in thousands	-27,600	—	—	—	—
Total current liabilities	US$ in thousands	77,600	69,200	60,100	51,000	44,100
Cash ratio		57.85	55.98	42.27	62.95	68.45

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,516,400K + $-27,600K) ÷ $77,600K
= 57.85

The cash ratio of DR Horton Inc has fluctuated over the past five years. In 2024, the cash ratio stood at 57.85, representing the company's ability to cover its current liabilities with cash and cash equivalents. This indicates that the company had a higher level of cash and cash equivalents relative to its current liabilities in 2024.

Comparing this to the previous years, the trend shows variability. The cash ratio was 55.98 in 2023, 42.27 in 2022, 62.95 in 2021, and 68.45 in 2020. The dip in the cash ratio in 2022 might indicate a period of lower liquidity or higher current liabilities relative to cash and cash equivalents. However, the cash ratio rebounded in subsequent years, demonstrating improved liquidity positions.

Overall, the cash ratio of DR Horton Inc has shown some fluctuations over the years, suggesting varying levels of liquidity and ability to cover short-term obligations with cash and cash equivalents. Investors and stakeholders may consider monitoring this ratio alongside other financial metrics to assess the company's financial health and liquidity management.