D.R. Horton, Inc. — Earnings Quality Grade F
DHI · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
Insufficient data
Insufficient data
Revenue -6.9%, CFFO 56.2%. Cash follows revenue
Expense Quality
Inventory 1.5% vs COGS -4.2%. Normal
CapEx growth -16.9% vs revenue -6.9%. Normal
SG&A/Gross Profit = 45.5%. Normal
Gross margin 23.7%, change -2.2pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF $3.3B, FCF/NI = 0.92
Accruals ratio = 0.5%. Low accruals
Cash $3.0B covers only 50% of debt $6.0B
Balance Sheet Health
Goodwill+Intangibles $0.2B = 1% of equity. Manageable
Debt/EBITDA = 1.3x. Healthy
Other assets 4.2% vs revenue -6.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 13% YoY. Normal
Manipulation Score
Insufficient data
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10