DR Horton Inc (DHI)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,516,400 | 3,873,600 | 2,540,500 | 3,210,400 | 3,018,500 |
| Short-term investments | US$ in thousands | -27,600 | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 77,600 | 69,200 | 60,100 | 51,000 | 44,100 |
| Quick ratio | 57.85 | 55.98 | 42.27 | 62.95 | 68.45 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,516,400K
+ $-27,600K
+ $—K)
÷ $77,600K
= 57.85
The quick ratio of DR Horton Inc has fluctuated over the past five years. In 2020 and 2021, the company had quick ratios of 68.45 and 62.95, respectively, indicating a strong ability to meet its short-term obligations using its most liquid assets. However, the quick ratio decreased to 42.27 in 2022 before rebounding to 55.98 in 2023 and further to 57.85 in 2024.
The quick ratio measures a company's ability to cover immediate liabilities with its most liquid assets, excluding inventory. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities. Despite the fluctuations in the quick ratio of DR Horton Inc, the ratios generally stayed above 1 over the five-year period, suggesting a healthy liquidity position.
It is important to note that while a quick ratio above 1 is favorable, a very high ratio may indicate an inefficient deployment of assets. Overall, the trend in DR Horton Inc's quick ratio over the past five years reflects fluctuations but generally indicates the company's ability to cover its short-term obligations with liquid assets.
Peer comparison
Sep 30, 2024