M/I Homes Inc (MHO)

Days of inventory on hand (DOH)

		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
DOH	days	295.21	295.36	277.20	256.31	321.19

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.24
= 295.21

To analyze MI Homes Inc.'s days of inventory on hand (DOH) based on the provided data, it is crucial to calculate the DOH for each year using the formula:

DOH = (Average Inventory / Cost of Goods Sold) x Number of Days in the Period

After calculating the DOH for each year, trends or patterns in the company's inventory management efficiency can be identified. A decreasing trend in DOH over the years would indicate that the company is selling its inventory faster, which may signify effective inventory management and good sales performance. Conversely, an increasing trend in DOH could suggest potential issues such as overstocking or slower sales, impacting the company's liquidity and profitability.

Comparing MI Homes Inc.'s DOH to industry averages or its competitors can provide further insights into its inventory management relative to peers in the industry. Additionally, assessing the company's DOH in conjunction with other financial ratios and metrics can offer a comprehensive analysis of its operational efficiency, financial health, and overall performance.