DR Horton Inc (DHI)

Return on equity (ROE)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	4,745,700	5,857,500	4,175,800	2,373,700	1,618,500
Total stockholders’ equity	US$ in thousands	22,696,200	19,396,300	14,886,500	11,840,000	10,020,900
ROE		20.91%	30.20%	28.05%	20.05%	16.15%

September 30, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $4,745,700K ÷ $22,696,200K
= 20.91%

To analyze D.R. Horton Inc.'s return on equity (ROE) over the past five years, we can observe a fluctuating trend. The ROE decreased from 2019 to 2020, but then showed an increasing pattern in the subsequent years.

The 20.91% ROE in 2023, while lower than the previous year's 30.20%, still indicates that for every dollar of shareholders' equity, the company generated a profit of 20.91 cents. This decline may warrant further investigation into the company's operational and financial efficiency.

The 2022 ROE of 30.20% represented a significant improvement from 2020, reflecting positively on the company's ability to generate profits from shareholders' equity.

Similarly, the ROE for 2021 also indicates strong financial performance, demonstrating the company's efficient use of equity to generate profits.

Overall, the fluctuating pattern in D.R. Horton Inc.'s ROE suggests that the company's ability to generate profits from shareholders' equity has varied over the past five years. This warrants a closer examination of the factors influencing the company's financial performance and efficiency in utilizing its equity.