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Despite a 5.4% decrease in share value over the last three months, D.R. Horton (NYSE:DHI) continues to attract investor interest due to its robust financial health. The company’s return on equity (ROE) suggests potential profitability even amidst recent market fluctuations.
The ROE, which calculates a firm’s ability to generate profits from shareholder investments, stands at 22% for D.R. Horton. This figure is based on a net profit of $4.9 billion and shareholders’ equity of $22 billion over the twelve months leading up to June 2023. This implies that for every dollar of shareholder capital, the company generated $0.22 in profit over the past year.
Specifically for D.R. Horton, its ROE surpasses the industry average of 18%, demonstrating strong performance. This aligns with the firm’s significant five-year net income growth of 31%. Such figures indicate that despite recent stock market fluctuations, D.R. Horton maintains a solid financial foundation and potential for future growth.
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