M/I Homes Inc (MHO)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,305,780 | 3,014,570 | 3,087,550 | 2,836,970 | 2,369,800 |
| Inventory | US$ in thousands | 3,091,860 | 2,797,150 | 2,828,600 | 2,452,430 | 1,916,610 |
| Inventory turnover | 1.07 | 1.08 | 1.09 | 1.16 | 1.24 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,305,780K ÷ $3,091,860K
= 1.07
The inventory turnover ratio for M/I Homes Inc has been relatively stable over the past five years. The ratio decreased from 1.24 in December 2020 to 1.16 in December 2021 and continued to decline slightly to 1.09 in December 2022. It further decreased to 1.08 in December 2023 and again to 1.07 in December 2024.
A decreasing trend in inventory turnover may indicate that the company is holding onto its inventory for a longer period, which could be due to factors such as slowing sales, overproduction, or poor inventory management. This could potentially lead to increased holding costs and obsolete inventory.
It is important for M/I Homes Inc to closely monitor its inventory turnover ratio and implement strategies to improve it if necessary, such as optimizing inventory levels, improving demand forecasting, and addressing any inefficiencies in the supply chain.
Peer comparison
Dec 31, 2024