DR Horton Inc (DHI)

Liquidity ratios

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
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
Quick 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
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

The liquidity ratios of D.R. Horton Inc. show consistent performance over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has ranged from 4.44 to 5.43 in this period, indicating a strong ability to cover its short-term liabilities.

The quick ratio, which provides a more stringent measure by excluding inventory from current assets, has also shown a steady range of 0.70 to 1.21. This suggests that the company has a relatively healthy ability to meet short-term obligations without relying on selling inventory.

The cash ratio, which measures the company's ability to cover short-term liabilities with its cash and cash equivalents, has remained between 0.65 and 1.15. This indicates a consistent ability to meet short-term obligations with cash on hand and short-term investments.

Overall, the liquidity ratios of D.R. Horton Inc. demonstrate a consistent and strong ability to meet its short-term financial obligations over the analyzed period.


Additional liquidity measure

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 conversion cycle days 330.78 312.76 333.02 344.31 350.69 344.03 361.35 340.87 324.53 302.27 308.41 296.49 298.13 290.55 305.54 313.16 309.04 300.12 321.19 338.22

The cash conversion cycle (CCC) of D.R. Horton Inc. has shown fluctuating patterns over the past eight quarters. The CCC measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

The company's CCC was longest in June 2022, at 339.62 days, and relatively shorter in September 2023, at 298.77 days. This suggests that the company has been able to improve its efficiency in managing inventory and collecting receivables in the most recent quarter.

A declining trend in CCC generally indicates that the company is managing its working capital more effectively, as it takes less time to sell inventory, collect receivables, and pay suppliers. However, the sharp increase in CCC in March 2023, compared to the previous quarter, may indicate challenges in managing working capital during that period.

It is important for investors and analysts to monitor the CCC closely as it reflects the efficiency of the company's operations and its ability to generate cash flows from its core business activities.