DR Horton Inc (DHI)

Return on total capital

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	6,407,700	6,741,300	6,725,700	6,446,800	6,468,800	6,515,300	6,902,400	7,527,900	7,754,100	7,412,000	6,652,500	5,951,900	5,493,200	4,830,900	4,196,800	3,641,000	3,129,500	2,732,500	2,580,300	2,417,400
Long-term debt	US$ in thousands	3,500,000	3,400,000	3,200,000	3,200,000	3,200,000	3,000,000	2,900,000	2,900,000	2,800,000	2,700,000	2,500,000	2,400,000	2,300,000	2,100,000	2,100,000	1,900,000	1,800,000	1,700,000	1,800,000	1,700,000
Total stockholders’ equity	US$ in thousands	25,312,800	24,656,500	23,815,500	23,153,400	22,696,200	21,656,400	20,712,700	20,153,300	19,396,300	18,062,500	16,774,900	15,677,700	14,886,500	13,802,900	12,963,100	12,485,200	11,840,000	11,048,000	10,458,000	10,227,400
Return on total capital		22.24%	24.03%	24.90%	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%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $6,407,700K ÷ ($3,500,000K + $25,312,800K)
= 22.24%

DR Horton Inc's return on total capital has been consistently strong over the periods indicated in the table. The company's ability to generate returns on its total capital has shown an upward trend, with the return ranging from 20.27% in December 2019 to 35.70% in June 2022. Throughout the analyzed periods, the return on total capital has remained above 20%, indicating efficient utilization of the company's capital to generate profits. The highest return was recorded in June 2022 at 35.70%, demonstrating the company's solid performance in utilizing its total capital effectively to generate profits. Overall, the trend suggests that DR Horton Inc has been successful in managing its total capital to create value for its investors.