M/I Homes Inc (MHO)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,033,500	4,131,390	3,745,890	3,046,140	2,500,290
Property, plant and equipment	US$ in thousands	34,918	37,446	37,648	26,612	22,118
Fixed asset turnover		115.51	110.33	99.50	114.46	113.04

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,033,500K ÷ $34,918K
= 115.51

Fixed asset turnover measures the efficiency of MI Homes Inc. in generating revenue from its fixed assets. The ratios over the past five years have shown a fluctuating trend. In 2023, the fixed asset turnover ratio improved significantly to 115.51, indicating that the company generated $115.51 in revenue for every dollar invested in fixed assets. This increase suggests that MI Homes Inc. utilized its fixed assets more effectively in generating sales compared to the previous year.

In 2022, the ratio was 110.33, showing a slight decrease from the previous year. However, the company still managed to generate revenue efficiently from its fixed assets. In 2021, the ratio further decreased to 99.50, indicating a potential decrease in the company's sales generated from fixed assets, suggesting a less efficient utilization of assets in revenue generation.

The ratio then improved in 2020 to 114.46, indicating a better utilization of fixed assets to generate revenue. In 2019, the ratio was 113.04, showing a relatively stable performance in leveraging fixed assets to generate sales. Overall, the increasing trend in recent years suggests that MI Homes Inc. has been improving its efficiency in generating revenue from its fixed assets, indicating better management of its asset base.