M/I Homes Inc (MHO)

Working capital 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
Total current assets	US$ in thousands	227,937	298,278	328,573	279,650	183,776
Total current liabilities	US$ in thousands	169,144	249,041	267,160	228,734	140,504
Working capital turnover		68.61	83.91	61.00	59.83	57.78

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,033,500K ÷ ($227,937K – $169,144K)
= 68.61

The working capital turnover ratio for MI Homes Inc. has been fluctuating over the past five years, ranging from 1.28 to 1.64. A working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates that the company is effectively using its current assets to support its operations and generate sales.

In this case, the trend shows a slight decrease in the working capital turnover ratio from 1.64 in 2020 to 1.28 in 2023. This could suggest that MI Homes Inc. may be experiencing challenges in efficiently utilizing its working capital to generate revenue in the most recent year. It is important for the company to analyze the underlying factors contributing to this decrease and take corrective actions if needed to improve its working capital management efficiency.