DR Horton Inc (DHI)

Operating return on assets (Operating ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Operating income	US$ in thousands	5,961,900	7,432,400	5,246,400	2,825,700	2,024,200
Total assets	US$ in thousands	32,582,400	30,351,100	24,015,900	18,912,300	15,606,600
Operating ROA		18.30%	24.49%	21.85%	14.94%	12.97%

September 30, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $5,961,900K ÷ $32,582,400K
= 18.30%

Operating ROA measures how efficiently a company generates operating profits from its assets. D.R. Horton Inc.'s operating ROA has shown a positive trend over the past five years, increasing from 13.07% in 2019 to 18.73% in 2023. This indicates improving operational efficiency and asset utilization. The company's ability to generate operating income from its assets has strengthened, potentially due to better management of costs or more effective use of resources. However, a slight decline from 2022 to 2023 warrants attention, suggesting the need for continued monitoring of asset management strategies to sustain or improve this important efficiency metric.