DR Horton Inc (DHI)

Return on total capital

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	6,468,700	7,754,100	5,493,100	3,129,500	2,265,400
Long-term debt	US$ in thousands	3,200,000	2,800,000	2,300,000	1,800,000	1,700,000
Total stockholders’ equity	US$ in thousands	22,696,200	19,396,300	14,886,500	11,840,000	10,020,900
Return on total capital		24.98%	34.93%	31.96%	22.94%	19.33%

September 30, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $6,468,700K ÷ ($3,200,000K + $22,696,200K)
= 24.98%

D.R. Horton Inc.'s return on total capital has exhibited fluctuations over the past five years, with a decreasing trend from 2019 to 2020, followed by a significant increase in 2021 and a slight decrease in 2022. The return on total capital was 21.96% in September 2023, down from 29.73% in September 2022. This indicates that the company generated a return of 21.96 cents for every dollar of total capital employed in its operations in 2023. Although the return decreased from the previous year, it remained at a relatively high level, suggesting efficient utilization of capital to generate profits. Further analysis of the company's financial and operational performance may provide insights into the factors contributing to these fluctuations and their potential implications for the company's overall financial health.