DR Horton Inc (DHI)

Return on total capital

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	6,438,800	6,468,700	7,754,100	5,493,100	3,129,500
Long-term debt	US$ in thousands	3,500,000	3,200,000	2,800,000	2,300,000	1,800,000
Total stockholders’ equity	US$ in thousands	25,312,800	22,696,200	19,396,300	14,886,500	11,840,000
Return on total capital		22.35%	24.98%	34.93%	31.96%	22.94%

September 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $6,438,800K ÷ ($3,500,000K + $25,312,800K)
= 22.35%

DR Horton Inc's return on total capital has exhibited some fluctuations over the past five years. The trend shows a strong performance, with the return on total capital ranging from 22.35% to 34.93%. The return was highest in September 2022 at 34.93% and lowest in September 2020 at 22.94%. Overall, the company has maintained relatively healthy returns on total capital, indicating efficient use of both debt and equity to generate profits. While there was a slight decrease in the return on total capital in the most recent period (Sep 30, 2024), the company still remains profitable. The consistent positive trend in return on total capital showcases DR Horton Inc's ability to effectively employ its capital resources to generate returns for its stakeholders.