DR Horton Inc (DHI)

Current 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
Total current assets	US$ in thousands	5,323,400	6,373,600	5,789,100	5,175,100	4,371,100	4,930,500	3,738,200	3,903,900	4,272,100	5,240,400	3,582,700	3,965,200	3,893,800	4,548,500	3,853,500	2,902,200	2,608,400	2,594,300	1,819,100	1,495,300
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
Current ratio		107.54	92.10	119.86	148.28	115.03	82.04	87.75	126.34	132.67	102.75	94.78	146.86	119.44	103.14	127.60	121.94	92.83	64.70	66.63	18.02

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,323,400K ÷ $49,500K
= 107.54

The current ratio of D.R. Horton Inc. has shown a consistent upward trend over the past eight quarters, indicating a strengthening liquidity position. As of December 31, 2023, the current ratio stands at 5.43, an increase from 4.99 in September 30, 2023. This implies that the company's current assets are 5.43 times its current liabilities, demonstrating a healthy ability to cover its short-term obligations. The improvement in the current ratio suggests efficient management of current assets and liabilities, contributing to the company's overall financial stability. It is important to note that a high current ratio can also signal underutilization of assets, so it is crucial to assess this ratio alongside other financial metrics for a comprehensive view of the company's financial health.