DR Horton Inc (DHI)

Quick ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash	US$ in thousands	3,873,600	2,540,500	3,210,400	3,018,500	1,494,300
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	69,200	60,100	51,000	44,100	40,100
Quick ratio		55.98	42.27	62.95	68.45	37.26

September 30, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,873,600K + $—K + $—K) ÷ $69,200K
= 55.98

The quick ratio, also known as the acid-test ratio, measures the ability of a company to meet its short-term liabilities using its most liquid assets. A quick ratio above 1 indicates that a company has an adequate level of liquid assets to cover its short-term liabilities.

Looking at D.R. Horton Inc.'s quick ratio over the past five years, there has been some fluctuation. In 2023, the quick ratio is 1.21, indicating an improvement from the previous year's 0.98. This suggests that the company has increased its ability to cover its short-term obligations using its liquid assets.

In 2022, the quick ratio was below 1 at 0.98, which could indicate a potential risk in meeting short-term obligations. However, the quick ratio improved from the prior year's 1.14 in 2021, which signifies a positive trend in the company's liquidity position.

In 2020, the quick ratio was relatively high at 1.35, indicating a strong ability to cover short-term liabilities with liquid assets. This was an improvement from the quick ratio of 1.01 in 2019.

Overall, the trend in D.R. Horton Inc.'s quick ratio shows some variability, but generally indicates a healthy ability to meet short-term obligations with liquid assets, with the 2023 ratio showing a positive improvement. Further analysis of the company's cash, marketable securities, and accounts receivable would provide more insights into its liquidity position.