DR Horton Inc (DHI)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	2,265,500	2,173,500	2,123,800
Long-term debt	US$ in thousands	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	1,700,000	1,600,000	1,600,000
Total stockholders’ equity	US$ in thousands	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	10,020,900	9,642,400	9,360,300
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%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $6,446,800K ÷ ($3,200,000K + $23,153,400K)
= 24.46%

Based on the provided data, D.R. Horton Inc.'s return on total capital has exhibited a generally positive trend over the past eight quarters. The return on total capital for the company decreased from 29.02% in March 2022 to 21.25% in December 2023. However, it is important to note that the return on total capital remains above 20% throughout this period, indicating strong efficiency in generating returns from the total capital employed.

The consistent high return on total capital suggests that D.R. Horton Inc. has been effectively utilizing its total capital to generate profits. This efficiency can be attributed to the company's ability to generate higher profits relative to the amount of total capital invested, which is a positive indication of effective management and operational performance.

Overall, the data reflects the company's strong performance in terms of generating returns from the total capital employed, which is a positive sign for investors and stakeholders. However, it is essential to complement this analysis with a broader assessment of the company's financial health and operational efficiency to gain a comprehensive understanding of its performance.