DR Horton Inc (DHI)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	4,516,400	2,992,300	3,063,100	3,323,400	3,873,600	3,379,100	3,051,100	2,591,100	2,540,500	1,655,700	1,663,900	2,442,100	3,210,400	1,942,700	2,205,200	2,454,900	3,018,500	2,353,500	1,522,800	1,583,300
Short-term investments	US$ in thousands	—	—	—	1,749,700	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	77,600	56,200	46,600	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
Cash ratio		58.20	53.24	65.73	102.49	55.98	69.96	87.42	68.19	42.27	38.87	53.85	75.84	62.95	51.39	81.67	75.30	68.45	77.93	63.98	56.35

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,516,400K + $—K) ÷ $77,600K
= 58.20

The cash ratio of DR Horton Inc has shown some fluctuations over the past few quarters. The cash ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents.

Analyzing the trend, the cash ratio was relatively high in the most recent quarter at 58.20, indicating that the company holds a significant amount of cash relative to its current liabilities. This suggests a strong liquidity position that may allow the company to meet its short-term financial obligations easily.

Looking back at the previous quarters, the cash ratio has generally been above 50, with some quarters showing higher ratios such as 102.49 in December 2023 and 87.42 in March 2023. These high ratios suggest that the company has historically maintained a healthy level of cash reserves compared to its current liabilities.

Overall, the trend in DR Horton Inc's cash ratio indicates a strong liquidity position and ability to cover short-term obligations with its cash holdings. This suggests a sound financial management strategy that prioritizes liquidity and financial stability.