D.R. Horton (D.R. Horton) Operating Income

: $6,043 Mil (TTM As of Dec. 2023)

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D.R. Horton's Operating Income for the three months ended in Dec. 2023 was $1,171 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $6,043 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. D.R. Horton's Operating Income for the three months ended in Dec. 2023 was $1,171 Mil. D.R. Horton's Revenue for the three months ended in Dec. 2023 was $7,726 Mil. Therefore, D.R. Horton's Operating Margin % for the quarter that ended in Dec. 2023 was 15.16%.

Good Sign:

D.R. Horton Inc operating margin is expanding. Margin expansion is usually a good sign.

D.R. Horton's 5-Year average Growth Rate for Operating Margin % was 11.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. D.R. Horton's annualized ROC % for the quarter that ended in Dec. 2023 was 13.40%. D.R. Horton's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 18.79%.

D.R. Horton Operating Income Historical Data

The historical data trend for D.R. Horton's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

D.R. Horton Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

2,039.50

2,890.10

5,318.80

7,570.40

6,101.60

D.R. Horton Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income																1,229.50	1,203.10	1,731.70	1,937.10	1,171.20

D.R. Horton Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $6,043 Mil.

D.R. Horton (NYSE:DHI) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

D.R. Horton's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	4684.8 * ( 1 - 23.39% )	/	( (26260	+	27314.8)	/ 2 )
=	3589.02528	/	26787.4
=	13.40 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	32582.4	-	2448.8	-	( 3873.6	-	max(0, 2595.9	-	31172.8	+	3873.6	))
=	26260

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	33381.6	-	2743.4	-	( 3323.4	-	max(0, 2865.8	-	32058	+	3323.4	))
=	27314.8

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

D.R. Horton's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	4684.8	/	( ( (64.6 + max(24276.4, 0))	+	(43.3 + max(25475.5, 0)) )	/	2 )
=	4684.8	/	( ( 24341	+	25518.8 )	/	2 )
=	4684.8	/	24929.9
=	18.79 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	22373.3	+	4499)	-	(2448.8	+	147.1	+	0)
=	24276.4

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	24050.3	+	4291)	-	(2743.4	+	122.4	+	0)
=	25475.5

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

D.R. Horton's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1171.2	/	7726
	=	15.16 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

D.R. Horton Operating Income Related Terms

Thank you for viewing the detailed overview of D.R. Horton's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

D.R. Horton (D.R. Horton) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » D.R. Horton Inc (NYSE:DHI) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

HO2:Germany HO2:Germany D1HI34:Brazil

Address

1341 Horton Circle, Arlington, TX, USA, 76011

Website

https://www.drhorton.com

D.R. Horton is a leading homebuilder in the United States with operations in 118 markets across 33 states. D.R. Horton mainly builds single-family detached homes (over 90% of home sales revenue) and offers products to entry-level, move-up, luxury buyers, and active adults. The company offers homebuyers mortgage financing and title agency services through its financial services segment. D.R. Horton's headquarters are in Arlington, Texas, and it manages six regional segments across the United States.

Executives

Aron M. Odom	officer: VP, Controller and PAO	1341 HORTON CIRCLE, ARLINGTON TX 76011
Bradley S Anderson	director	1361 HORTON CIRCLE, ARLINGTON TX 76011
Barbara K Allen	director	1361 HORTON CIRCLE, ARLINGTON TX 76011
Michael R Buchanan	director	1341 HORTON CIRCLE, ARLINGTON TX 76011
Bill W Wheat	director, officer: EVP and CFO	1361 HORTON CIRCLE, ARLINGTON TX 76011
Paul J Romanowski	officer: EVP and COO	1341 HORTON CIRCLE, ARLINGTON TX 76011
Michael J Murray	officer: EVP and COO	1361 HORTON CIRCLE, ARLINGTON TX 76011
Michael W Hewatt	director	1361 HORTON CIRCLE, ARLINGTON TX 76011
David V Auld	officer: EVP and COO	1361 HORTON CIRCLE, ARLINGTON TX 76011
Benjamin Sr Carson	director	PO BOX 3599, BATTLE CREEK MI 49016-3599
Maribess L Miller	director	2711 N. HASKELL AVENUE, SUITE 2300, DALLAS TX 75204
Donald R Horton	director, officer: Chairman	1361 HORTON CIRCLE, ARLINGTON TX 76011
Donald J Tomnitz	director, officer: President and CEO	2221 E. LAMAR BLVD., SUITE 790, ARLINGTON TX 76006
Stacey Dwyer	officer: EVP and Treasurer	301 COMMERCE STREET, SUITE 500, FORT WORTH TX 76102
Bobby G Scott	director	301 COMMERCE STREET, SUITE 500, FORT WORTH TX 76102