DR Horton Inc (DHI)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 26.14% | 26.37% | 27.19% | 28.91% | 30.65% | 31.37% | 31.40% | 30.20% | 29.15% | 28.35% | 27.30% | 26.27% | 25.21% | 24.31% | 23.47% | 22.84% | 22.33% | 22.01% | 22.04% | 22.45% |
| Operating profit margin | 11.34% | 11.68% | 17.76% | 19.55% | 21.53% | 22.43% | 22.53% | 21.17% | 19.89% | 18.99% | 38.32% | 38.68% | 39.41% | 40.49% | 36.18% | 36.14% | 36.02% | 36.46% | 34.49% | 35.52% |
| Pretax margin | 17.39% | 17.67% | 18.25% | 19.96% | 21.84% | 22.68% | 22.73% | 21.37% | 20.08% | 19.23% | 17.94% | 16.72% | 15.68% | 14.65% | 13.64% | 13.17% | 12.55% | 12.08% | 12.13% | 12.40% |
| Net profit margin | 13.18% | 13.38% | 14.07% | 15.39% | 16.85% | 17.50% | 17.42% | 16.53% | 15.66% | 15.03% | 14.06% | 13.16% | 12.30% | 11.69% | 10.82% | 10.26% | 9.74% | 9.20% | 9.26% | 9.39% |
D.R. Horton Inc.'s profitability ratios show a general decreasing trend over the past few quarters. The gross profit margin has experienced a consistent decline from 30.65% in the fourth quarter of 2022 to 26.14% in the last quarter of 2023. Similarly, the operating profit margin and pretax margin have also seen a decrease over these periods. The net profit margin has followed a similar trend, falling from 16.85% to 13.18% during the same period.
These declining trends in profitability ratios could indicate potential challenges for the company in managing its costs and expenses, or it may reflect changes in the company's pricing strategies or sales dynamics. It's essential for stakeholders to closely monitor these trends to understand the underlying factors driving these changes in profitability ratios.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.21% | 12.71% | 19.01% | 21.11% | 23.96% | 24.74% | 24.93% | 24.16% | 22.99% | 21.97% | 45.83% | 44.35% | 44.28% | 43.49% | 38.14% | 38.96% | 39.93% | 41.10% | 38.65% | 39.26% |
| Return on assets (ROA) | 14.18% | 14.57% | 15.06% | 16.62% | 18.75% | 19.30% | 19.28% | 18.86% | 18.10% | 17.39% | 16.82% | 15.09% | 13.82% | 12.55% | 11.41% | 11.06% | 10.80% | 10.37% | 10.37% | 10.38% |
| Return on total capital | 24.46% | 24.98% | 26.42% | 29.23% | 32.65% | 34.93% | 35.70% | 34.51% | 32.92% | 31.96% | 30.38% | 27.86% | 25.31% | 22.94% | 21.43% | 21.05% | 20.27% | 19.33% | 19.33% | 19.38% |
| Return on equity (ROE) | 20.45% | 20.91% | 22.48% | 25.01% | 28.16% | 30.20% | 30.81% | 30.00% | 28.87% | 28.05% | 26.56% | 24.54% | 21.90% | 20.05% | 18.56% | 18.11% | 17.24% | 16.15% | 16.38% | 16.65% |
D.R. Horton Inc.'s profitability ratios show a consistent and favorable trend over the past eight quarters. The operating return on assets (Operating ROA) has consistently remained above 18%, indicating that the company generates solid operating income in relation to its total assets, with a peak of 25.07% in the second quarter of 2022. This suggests efficient utilization of its assets to generate profits.
The return on assets (ROA) has also exhibited a positive trend, remaining above 14% in every quarter, peaking at 18.75% in the fourth quarter of 2022. This indicates the company's ability to generate earnings from its total assets, with higher ROA values reflecting better efficiency in asset utilization.
D.R. Horton Inc.'s return on total capital has shown steady growth, consistently exceeding 21%. This suggests that the company is effectively utilizing all forms of capital to generate profits, with a peak of 30.11% in the second quarter of 2022.
Moreover, the return on equity (ROE) has shown a strong positive trend, consistently exceeding 20%, reaching a peak of 30.81% in the second quarter of 2022. This indicates that the company has been consistently generating substantial profits from the shareholders' equity, reflecting strong management of the company's resources.
Overall, D.R. Horton Inc.'s profitability ratios demonstrate efficient use of assets and capital to generate earnings, along with a solid return on equity, indicating a strong financial performance over the past two years.