M/I Homes Inc (MHO)
Inventory turnover
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
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Cost of revenue (ttm) | US$ in thousands | 3,305,781 | 3,125,531 | 3,056,701 | 3,012,029 | 3,014,573 | 3,228,840 | 3,205,215 | 3,205,753 | 3,087,551 | 2,953,232 | 2,894,784 | 2,858,089 | 2,836,972 | 2,726,502 | 2,697,344 | 2,535,463 | 2,369,802 | 2,271,497 | 2,137,254 | 2,083,320 |
Inventory | US$ in thousands | 3,022,380 | 3,068,940 | 2,938,460 | 2,774,160 | 2,797,150 | 2,740,530 | 2,687,010 | 2,657,410 | 2,828,600 | 3,016,740 | 2,816,260 | 2,582,550 | 2,452,430 | 2,353,140 | 2,076,470 | 1,960,530 | 1,916,610 | 1,843,410 | 1,830,810 | 1,822,530 |
Inventory turnover | 1.09 | 1.02 | 1.04 | 1.09 | 1.08 | 1.18 | 1.19 | 1.21 | 1.09 | 0.98 | 1.03 | 1.11 | 1.16 | 1.16 | 1.30 | 1.29 | 1.24 | 1.23 | 1.17 | 1.14 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,305,781K ÷ $3,022,380K
= 1.09
The inventory turnover of M/I Homes Inc has fluctuated over the past several quarters. The trend shows that the company's inventory turnover ratio has been relatively stable, with a slight increase in the first half of 2021 followed by a decline towards the end of the year. The ratio indicates that M/I Homes Inc is able to sell and replace its inventory approximately once a year on average.
In recent quarters, the inventory turnover ratio has ranged between 0.98 and 1.30, indicating that the company manages its inventory efficiently. A higher inventory turnover ratio typically suggests that the company is selling its inventory more quickly and efficiently, which is generally seen as positive for business operations. On the other hand, a lower ratio may indicate slower sales or excess inventory levels, which could potentially lead to holding costs and reduced profitability.
Overall, the inventory turnover ratio of M/I Homes Inc reflects a moderate level of efficiency in managing its inventory, which is essential for sustaining a healthy financial position and optimizing profitability. Further analysis and comparison with industry peers could provide additional insights into the company's inventory management practices and competitiveness within the market.
Peer comparison
Dec 31, 2024
Dec 31, 2024