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Dream Finders Homes (Dream Finders Homes) ROC (Joel Greenblatt) % : 42.29% (As of Dec. 2023)


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What is Dream Finders Homes ROC (Joel Greenblatt) %?

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Dream Finders Homes's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 42.29%.

The historical rank and industry rank for Dream Finders Homes's ROC (Joel Greenblatt) % or its related term are showing as below:

DFH' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 9.5   Med: 21.5   Max: 33.15
Current: 31.75

During the past 6 years, Dream Finders Homes's highest ROC (Joel Greenblatt) % was 33.15%. The lowest was 9.50%. And the median was 21.50%.

DFH's ROC (Joel Greenblatt) % is ranked better than
74.77% of 107 companies
in the Homebuilding & Construction industry
Industry Median: 12.37 vs DFH: 31.75

Dream Finders Homes's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 26.80% per year.


Dream Finders Homes ROC (Joel Greenblatt) % Historical Data

The historical data trend for Dream Finders Homes's ROC (Joel Greenblatt) % 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.

Dream Finders Homes ROC (Joel Greenblatt) % Chart

Dream Finders Homes Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial 15.44 21.23 21.76 30.53 33.15

Dream Finders Homes Quarterly Data
Dec18 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.55 21.25 31.42 30.79 42.29

Competitive Comparison of Dream Finders Homes's ROC (Joel Greenblatt) %

For the Residential Construction subindustry, Dream Finders Homes's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Dream Finders Homes's ROC (Joel Greenblatt) % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Dream Finders Homes's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Dream Finders Homes's ROC (Joel Greenblatt) % falls into.



Dream Finders Homes ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(33.315 + 1473.917 + 33.172) - (260.07 + 163.544 + 1.1368683772162E-13)
=1116.79

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(30.874 + 1440.249 + 54.311) - (341.504 + 172.574 + 0)
=1011.356

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Dream Finders Homes for the quarter that ended in Dec. 2023 can be restated 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 )
=565.228/( ( (270.479 + max(1116.79, 0)) + (274.53 + max(1011.356, 0)) )/ 2 )
=565.228/( ( 1387.269 + 1285.886 )/ 2 )
=565.228/1336.5775
=42.29 %

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

* 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.


Dream Finders Homes  (NYSE:DFH) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


Dream Finders Homes ROC (Joel Greenblatt) % Related Terms

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Dream Finders Homes (Dream Finders Homes) Business Description

Traded in Other Exchanges
N/A
Address
14701 Philips Highway, Suite 300, Jacksonville, FL, USA, 32256
Dream Finders Homes Inc is engaged in the home building business. It designs, builds, and sells homes in Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, and Austin. The company operates through six geographical divisions namely, Jacksonville, Orlando, Denver, Washington DC (Capital), and the Carolinas (H&H Homes), Jet Home Loans LLC. Jacksonville division generates most of the revenue for the firm.
Executives
Patrick O. Zalupski director, officer: President and CEO 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Lorena Anabel Fernandez officer: CFO 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Doug Moran officer: Senior VP and COO 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Len Sturm director 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Justin Udelhofen director 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Walton William H Iii director ONE INDEPENDENT DRIVE, SUITE 1600, JACKSONVILLE FL 32202
William Weatherford director 19701 BETHEL CHURCH ROAD #302, CORNELIUS NC 28031
Robert E. Riva officer: VP, GC and Corporate Secretary 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Boston Omaha Corp 10 percent owner 1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
Boc Dfh, Llc 10 percent owner 1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
United Casualty & Surety Insurance Co. other: SUBSID of Boston Omaha Corp 292 NEWBURY STREET, BOX 105, BOSTON MA 02115
John O. Blanton officer: VP and CAO 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Rick A. Moyer officer: Senior VP and CFO 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Megha H. Parekh director 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Lovett William Radford Ii director C/O EVERBANK FINANCIAL CORP, 501 RIVERSIDE AVENUE, JACKSONVILLE FL 32202