M/I Homes Inc (MHO)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	4,033,498	4,277,910	4,244,470	4,271,110	4,131,391	3,966,141	3,857,530	3,777,920	3,745,885	3,600,562	3,544,164	3,297,318	3,046,145	2,881,868	2,687,292	2,596,784	2,500,290	2,480,625	2,395,122	2,329,534
Total current assets	US$ in thousands	227,937	256,776	245,364	285,539	298,278	240,004	250,625	255,796	328,573	264,457	216,797	260,088	279,650	177,410	196,524	187,913	183,776	156,713	176,655	194,982
Total current liabilities	US$ in thousands	169,144	200,600	186,396	223,618	249,041	189,371	194,602	203,650	267,160	211,300	167,119	176,200	228,734	136,119	134,200	145,055	140,504	108,594	104,000	104,026
Working capital turnover		68.61	76.15	71.98	68.98	83.91	78.33	68.86	72.45	60.99	67.73	71.34	39.31	59.83	69.79	43.12	60.59	57.78	51.55	32.97	25.61

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,033,498K ÷ ($227,937K – $169,144K)
= 68.61

MI Homes Inc. has demonstrated a decreasing trend in its working capital turnover ratio over the past eight quarters, falling from 1.63 in Q1 2022 to 1.28 in Q4 2023. This indicates that the company's efficiency in utilizing its working capital has declined over time. A lower working capital turnover ratio suggests that the company is taking longer to convert its working capital into sales revenue.

The decreasing trend in the working capital turnover ratio could be a result of various factors such as inefficient management of inventory, slow collection of accounts receivable, or an increase in accounts payable days. It is essential for MI Homes Inc. to investigate the underlying reasons for this trend and take necessary steps to improve its working capital efficiency to enhance overall financial performance and liquidity.