DR Horton Inc (DHI)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	1,494,300	864,200	698,800
Short-term investments	US$ in thousands	1,749,700	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		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	37.26	31.66	8.42

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,323,400K + $1,749,700K) ÷ $49,500K
= 102.49

The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. D.R. Horton Inc.'s cash ratio has shown fluctuations over the past eight quarters.

In the most recent quarter ending December 31, 2023, the cash ratio stood at 1.04, indicating that the company had $1.04 in cash and cash equivalents for every $1 of its current liabilities. This demonstrates a healthy position to meet short-term obligations.

Comparing this to the previous quarters, there was an increase in the cash ratio from the quarter ending March 31, 2023, where it was 0.91. This improvement suggests that D.R. Horton Inc. has enhanced its ability to cover short-term liabilities with cash on hand.

Analyzing further, there was a significant improvement in the cash ratio from the quarter ending June 30, 2022, where it was 0.65, to the quarter ending September 30, 2022, where it increased to 0.93. This suggests a notable enhancement in the company's short-term liquidity position during that period.

Overall, the trend in D.R. Horton Inc.'s cash ratio indicates an improvement in its ability to cover short-term obligations with cash and cash equivalents, reflecting positively on its liquidity management.