DR Horton Inc (DHI)

Current ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Total current assets	US$ in thousands	7,016,400	6,373,600	4,930,500	5,240,400	4,548,500
Total current liabilities	US$ in thousands	77,600	69,200	60,100	51,000	44,100
Current ratio		90.42	92.10	82.04	102.75	103.14

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $7,016,400K ÷ $77,600K
= 90.42

The current ratio of DR Horton Inc has shown some fluctuation over the past five years. As of September 30, 2024, the current ratio stands at 90.42, a decrease from the previous year's ratio of 92.10. This indicates that the company's current assets may not be sufficient to cover its current liabilities as effectively as in the previous year.

Comparing the current ratio to the ratios from 2022 and 2021, we observe a notable downward trend. In 2022, the current ratio was 82.04, indicating a lower liquidity position compared to the current year. The ratio in 2021 was higher at 102.75, suggesting a stronger ability to meet short-term obligations at that time.

Additionally, when comparing the current ratio to the ratio of 103.14 in 2020, which was even higher than the current year, it is evident that there has been a decline in the company's short-term liquidity position over the past five years. This trend may raise concerns about DR Horton Inc's ability to manage its short-term financial obligations effectively.

Overall, the current ratio of DR Horton Inc has exhibited variability over the years, and a downward trend in recent years, indicating a potential decrease in liquidity and ability to cover short-term liabilities.