M/I Homes Inc (MHO)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 295.21 | 295.36 | 277.20 | 256.31 | 321.19 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 295.21 | 295.36 | 277.20 | 256.31 | 321.19 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 295.21 + — – —
= 295.21
Based on the data provided for MI Homes Inc., the cash conversion cycle for the past five years has consistently been 0.00 days. This indicates that the company is effectively managing its working capital and swiftly converting its investments in inventory into cash, while also efficiently collecting its accounts receivable and managing its accounts payable.
A cash conversion cycle of 0.00 days suggests that MI Homes Inc. is efficiently managing its cash flow, which is a positive indicator of the company's liquidity and operational efficiency. This trend over the past five years signifies a stable and effective working capital management strategy within the organization. It also implies that the company may have effective inventory management, quick collection of receivables, and well-managed payment terms with suppliers.
Overall, a consistently low or zero cash conversion cycle reflects positively on the company's financial health and operational efficiency, indicating that MI Homes Inc. is effectively managing its working capital to support its business operations.
Peer comparison
Dec 31, 2023