D.R. HortonFRA:HO2 -0.61%92 Current Ratio is 11.66 as of Mar. 2026, which is 20% below its 10-year median of 14.62. GuruFocus rates FRA:HO2 with a GF Score™ of 92/100 and a GF Value™ of €133.70 (Fairly Valued). The stock has 7 warning signs investors should review. Among 95 Homebuilding & Construction companies, D.R. Horton ranks better than 94.74% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. D.R. Horton's current ratio for the quarter that ended in Mar. 2026 was 11.66.
D.R. Horton has a current ratio of 11.66. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for D.R. Horton's Current Ratio or its related term are showing as below:
FRA:HO2'
s Current Ratio Range Over the Past 10 Years
Min: 9.98 Med: 14.62 Max: 18.9
Current: 11.66
During the past 13 years, D.R. Horton's highest Current Ratio was 18.90. The lowest was 9.98. And the median was 14.62.
FRA:HO2's Current Ratio is ranked better than 94.74% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 2.46
vs FRA:HO2: 11.66
D.R. Horton (FRA:HO2) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
D.R. Horton Current Ratio Related Terms
D.R. Horton Current Ratio Historical Data
* Premium members only.
The historical data trend for D.R. Horton's Current Ratio 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.
FRA:HO2 vs PHM, LEN, NVR: Current Ratio Comparison
For the Residential Construction subindustry, D.R. Horton's Current Ratio, along with its competitors' market caps and Current Ratio 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.
D.R. Horton Current Ratio vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, D.R. Horton's Current Ratio distribution charts can be found below:
* The bar in red indicates where D.R. Horton's Current Ratio falls into.
* 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.
D.R. Horton (FRA:HO2) has a Current Ratio of 11.66 as of Mar. 2026. This is 20% below median its historical median of 14.62. Over the past decade, D.R. Horton's Current Ratio has ranged from 9.98 to 18.90. According to the industry distribution chart, D.R. Horton ranks #5 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 5.3%.
Is D.R. Horton's Current Ratio too high?
D.R. Horton's current Current Ratio of 11.66 is 20% below median its 10-year median of 14.62. Over the past 10 years, this metric has ranged from a low of 9.98 to a high of 18.90. The Homebuilding & Construction industry median Current Ratio is 2.46. D.R. Horton's value of 11.66 is 374% above this industry median. Based on the distribution chart, D.R. Horton ranks #5 out of 95 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, D.R. Horton has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does D.R. Horton's Current Ratio compare to PHM and LEN?
According to the Homebuilding & Construction industry distribution chart, D.R. Horton ranks #5 out of 95 companies for Current Ratio. This places D.R. Horton in the top 5% of its industry — outperforming the majority of peers. The industry median Current Ratio is 2.46. D.R. Horton's value of 11.66 is 374% above this benchmark. Historically, D.R. Horton's own Current Ratio has ranged from 9.98 to 18.90 over the past decade. While the company's 10-year median is 14.62 vs. the industry median of 2.46, D.R. Horton has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Homebuilding & Construction company?
The median Current Ratio among Homebuilding & Construction companies is 2.46, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. D.R. Horton's current Current Ratio of 11.66 is 374% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Homebuilding & Construction industry, the median Current Ratio is 2.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. D.R. Horton's current Current Ratio is 11.66, which is 20% below median its own 10-year median of 14.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is D.R. Horton stock overvalued right now?
Based on GuruFocus' analysis, D.R. Horton (FRA:HO2) is currently considered Fairly Valued. The stock's GF Value™ is €133.70, compared to a current price of €145.45 — trading 8.8% above its estimated fair value. The current Current Ratio is 11.66, which is 20% below median its 10-year median of 14.62 and 374% above the Homebuilding & Construction industry median of 2.46. D.R. Horton's overall GF Score™ is 92/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For D.R. Horton (FRA:HO2), the current Current Ratio is 11.66 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is D.R. Horton (FRA:HO2) Overvalued in 2026?
Based on GuruFocus' analysis, D.R. Horton stock appears to be overvalued.
The current stock price of €145.45 is trading 8.8% above its estimated GF Value™ of €133.70.
GuruFocus considers D.R. Horton to be Fairly Valued.
Key valuation signals for FRA:HO2:
Current Ratio: 11.66 (20% below median its 10-year median of 14.62)
GF Value™: €133.70 vs. price of €145.45 (8.8% above fair value)
Industry Position: 374% above the Homebuilding & Construction median (#5 of 95)
No single metric tells the full story. See the FRA:HO2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
D.R. Horton is the largest homebuilder in the United States with operations in 126 markets across 36 states. D.R. Horton mainly builds single-family 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. The firm has majority ownership of Forestar Group, a publicly traded residential lot development company. D.R. Horton's headquarters are in Arlington, Texas.
92GF Score
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