M/I Homes Inc (MHO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 1.24 | 1.24 | 1.32 | 1.42 | 1.14 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 68.61 | 83.91 | 61.00 | 59.83 | 57.78 |
The inventory turnover for MI Homes Inc. for the last five years shows that the company did not have any inventory turnover, as the ratio was 0.00 each year. This indicates that the company did not efficiently manage its inventory levels or experienced issues with selling its inventory.
The receivables turnover data is missing, so we cannot provide an analysis of how effectively MI Homes collected on its receivables over the same period.
MI Homes Inc. had a payables turnover ratio of 0.00 each year for the last five years. This suggests that the company did not effectively manage its accounts payable by either not paying its suppliers promptly or having a low level of payables relative to its purchases.
The working capital turnover ratio for MI Homes decreased slightly from 1.57 in 2019 to 1.28 in 2023. This indicates that the company generated $1.28 in revenue for every dollar of working capital in 2023, down from $1.57 in 2019. This suggests a slight decrease in the efficiency with which the company utilized its working capital to generate sales. Further analysis would be needed to understand the reasons behind this trend and its impact on the company's overall financial performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 295.21 | 295.36 | 277.20 | 256.31 | 321.19 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for MI Homes Inc.'s activity ratios, the specific values for Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables are not available. Without the exact figures, we are unable to calculate or analyze these activity ratios for the years 2019 to 2023.
However, these activity ratios typically offer insights into how efficiently a company manages its inventory, collects receivables from customers, and pays its suppliers. A lower DOH indicates quicker inventory turnover, a lower DSO indicates faster collections from customers, and a higher number of days of payables suggests a longer time taken to settle payables.
For a comprehensive analysis, it would be beneficial to calculate and compare these ratios over the years to assess any trends or patterns in the company's management of inventory, receivables, and payables, and evaluate their impact on MI Homes Inc.'s operational efficiency and overall financial performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 115.51 | 110.33 | 99.50 | 114.46 | 113.04 |
| Total asset turnover | 1.00 | 1.11 | 1.16 | 1.15 | 1.19 |
The long-term activity ratios of MI Homes Inc. provide insight into how efficiently the company utilizes its assets to generate sales over a longer period. The fixed asset turnover ratio indicates how effectively the company generates revenue from its fixed assets. MI Homes Inc. has shown consistency and improvement in this ratio over the years, with a peak of 115.51 in 2023 compared to 99.50 in 2021. This signifies that the company is efficiently using its fixed assets to generate sales each year.
On the other hand, the total asset turnover ratio reflects the overall efficiency of the company in generating sales from all its assets, not just fixed assets. The ratio has shown a declining trend over the past few years, reducing from 1.19 in 2019 to 1.00 in 2023. This suggests that MI Homes Inc. may be experiencing challenges in effectively utilizing all its assets to generate revenue, which could be an area for further investigation and improvement.
In conclusion, while MI Homes Inc. demonstrates strong efficiency in generating sales from its fixed assets, there is a need for the company to focus on optimizing the utilization of its total assets to improve overall operational efficiency and profitability.