M/I Homes Inc (MHO)

Short-term

Turnover ratios

M/I Homes Inc's inventory turnover ratio has shown some fluctuation over the years, ranging from a low of 0.98 to a high of 1.30. Generally, a higher inventory turnover ratio indicates that the company is efficiently managing its inventory levels. However, a decreasing trend in the ratio could suggest potential issues with inventory management or slower sales.

On the other hand, the company's receivables turnover ratio and payables turnover ratio are not provided in the data, which limits our ability to assess the efficiency of the company's accounts receivable and accounts payable management.

In terms of the working capital turnover ratio, M/I Homes Inc has shown a slight downward trend over the years, indicating a decreasing efficiency in generating revenue from its working capital. A lower working capital turnover ratio may suggest that the company is not effectively utilizing its capital to generate sales.

Overall, M/I Homes Inc's activity ratios suggest that there may be room for improvement in optimizing inventory management and working capital utilization to enhance operational efficiency and financial performance.

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Average number of days

M/I Homes Inc's Days of Inventory on Hand (DOH) fluctuated over the period under review, ranging from a low of 280.98 days as of June 30, 2021, to a high of 372.85 days as of September 30, 2022. This indicates the number of days it takes for the company to sell its inventory, with a higher number potentially suggesting slow-moving inventory or overstocking. The trend has been somewhat erratic, with certain quarters showing significant increases followed by declines.

On the other hand, the Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available, indicating either the absence of accounts receivable or accounts payable, or a lack of data disclosure for these specific metrics. This limits the ability to assess the efficiency of sales collection and payment of obligations, making it challenging to gauge cash conversion cycles and financial performance from a working capital perspective.

Overall, while the Days of Inventory on Hand provides some insight into the management of inventory levels, the lack of DSO and payables data restricts a comprehensive evaluation of M/I Homes Inc's operational efficiency and liquidity management through activity ratios.

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Long-term

M/I Homes Inc's Fixed Asset Turnover ratio measures how efficiently the company generates sales from its fixed assets. The trend in the Fixed Asset Turnover ratio shows fluctuations over the years. From March 2020 to June 2021, the ratio increased steadily, indicating improving efficiency in utilizing fixed assets to generate revenue. However, there was a significant drop in the ratio between June 2021 and December 2021. Subsequently, there were fluctuations in the ratio from March 2022 to June 2023. It is important to note that the ratio was not available for the periods after December 2023.

On the other hand, the Total Asset Turnover ratio reflects how efficiently the company utilizes all its assets to generate revenue. The trend in the Total Asset Turnover ratio indicates a fluctuating pattern over the years. The ratio remained relatively stable around 1.15 from March 2020 to December 2021. However, from March 2022 onwards, there was a decline in the ratio until December 2023, where it reached 1.00. The ratio continued to drop slightly in the following periods.

Overall, the analysis of M/I Homes Inc's long-term activity ratios suggests mixed efficiency in utilizing fixed assets to generate sales and all assets to generate revenue over the years, with some periods showing improvements and others displaying fluctuations.