DR Horton Inc (DHI)

Liquidity ratios

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
Current ratio 90.42 99.51 123.08 107.54 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
Quick 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
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

DR Horton Inc has shown strong liquidity levels over the analyzed periods based on its current, quick, and cash ratios. The current ratio has consistently remained well above 1, indicating that the company has more than enough current assets to cover its current liabilities. This suggests that DR Horton has the ability to meet its short-term obligations without significant liquidity concerns.

The quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. Although lower than the current ratio, the quick ratio has also been healthy over the periods, with values comfortably above 1. This indicates that the company can meet its short-term obligations using its most liquid assets, excluding inventory.

The cash ratio, which is the most conservative liquidity measure, focuses solely on cash and cash equivalents to cover current liabilities. DR Horton's cash ratio has been consistent and strong, suggesting the company has a solid ability to pay off its short-term obligations with its readily available cash resources.

Overall, based on the liquidity ratios examined, DR Horton Inc appears to be well-positioned to handle its short-term financial obligations effectively and efficiently.

Additional liquidity measure

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 conversion cycle days 333.37 338.95 331.91 330.78 312.76 333.02 344.31 350.69 344.03 361.35 340.87 324.53 302.27 308.41 296.49 298.13 290.55 305.54 313.16 309.04

DR Horton Inc's cash conversion cycle, a measure of how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown some fluctuations over the past few years.

In the most recent period, ending September 30, 2024, the cash conversion cycle was 333.37 days. This indicates that on average, it takes DR Horton Inc approximately 333 days to complete a full cash cycle from the initial investment in inventory to the collection of cash from customers.

Comparing the current cycle to previous periods, we can observe variations in the efficiency of DR Horton Inc's cash conversion. The cycle has ranged from a low of 290.55 days in December 2020 to a high of 361.35 days in June 2022.

Overall, a lower cash conversion cycle is typically preferable as it signals that the company is able to quickly convert its investments back into cash, improving liquidity and operational efficiency. The fluctuations in the cycle may indicate changes in inventory management, sales terms, or collection processes that have impacted DR Horton Inc's cash flow dynamics. Further analysis into the underlying factors driving these changes would be necessary to fully assess the company's operating performance and financial health.