01-07-2021, 07:11 AM
$DHI, Question about Cash Flow from Operations
<!-- SC_OFF --><div class="md"><p>I was looking at $DHI, and they seem like a great company. #1 U.S. home builder by homes sold, increasing revenue and net profit, good balance sheet, and in no financial threat. They are doing much better than their competitors, because they operate throughout the sunbelt of America and provide fairly cheap homes(~$300,000 avg). This, I believe, has a lot of potential, because more people are moving down south and into suburbs. With affordable homes and demand, I see a great future for this company.</p> <p>My only concern is their Cash Flow from Operations(CFO) is slightly lagging behind their Net Income. Their CFO is almost half of their Net Income. I've checked other companies in the home construction industry, and they don't seem to have this problem. I might be missing something, or I might be over exaggerating this issue, but I would like to hear your thoughts about this and what you think about this company and industry.</p> <p>​</p> <table><thead> <tr> <th align="left">Year</th> <th align="left">2017</th> <th align="left">2018</th> <th align="left">2019</th> <th align="left">TTM</th> </tr> </thead><tbody> <tr> <td align="left">Net Income</td> <td align="left">1,038.4</td> <td align="left">1,460.3</td> <td align="left">1,618.5</td> <td align="left">2,373.7</td> </tr> <tr> <td align="left">CFO</td> <td align="left"><strong>440.2</strong></td> <td align="left"><strong>545.2</strong></td> <td align="left"><strong>892.1</strong></td> <td align="left"><strong>1,421.6</strong></td> </tr> </tbody></table> <p>​</p> <p>What seems to be dragging this down is their Change In Inventories and their Change in Other Net Operating Assets. I was also wondering if someone could help me break down these 2 terms. Thanks in advance!</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Albert0es"> /u/Albert0es </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/ks3xdj/dhi_question_about_cash_flow_from_operations/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/ks3xdj/dhi_question_about_cash_flow_from_operations/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>I was looking at $DHI, and they seem like a great company. #1 U.S. home builder by homes sold, increasing revenue and net profit, good balance sheet, and in no financial threat. They are doing much better than their competitors, because they operate throughout the sunbelt of America and provide fairly cheap homes(~$300,000 avg). This, I believe, has a lot of potential, because more people are moving down south and into suburbs. With affordable homes and demand, I see a great future for this company.</p> <p>My only concern is their Cash Flow from Operations(CFO) is slightly lagging behind their Net Income. Their CFO is almost half of their Net Income. I've checked other companies in the home construction industry, and they don't seem to have this problem. I might be missing something, or I might be over exaggerating this issue, but I would like to hear your thoughts about this and what you think about this company and industry.</p> <p>​</p> <table><thead> <tr> <th align="left">Year</th> <th align="left">2017</th> <th align="left">2018</th> <th align="left">2019</th> <th align="left">TTM</th> </tr> </thead><tbody> <tr> <td align="left">Net Income</td> <td align="left">1,038.4</td> <td align="left">1,460.3</td> <td align="left">1,618.5</td> <td align="left">2,373.7</td> </tr> <tr> <td align="left">CFO</td> <td align="left"><strong>440.2</strong></td> <td align="left"><strong>545.2</strong></td> <td align="left"><strong>892.1</strong></td> <td align="left"><strong>1,421.6</strong></td> </tr> </tbody></table> <p>​</p> <p>What seems to be dragging this down is their Change In Inventories and their Change in Other Net Operating Assets. I was also wondering if someone could help me break down these 2 terms. Thanks in advance!</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Albert0es"> /u/Albert0es </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/ks3xdj/dhi_question_about_cash_flow_from_operations/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/ks3xdj/dhi_question_about_cash_flow_from_operations/">[comments]</a></span>Kind Regards R