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.