M/I Homes Inc (MHO)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 341.38 | 338.68 | 334.39 | 315.53 | 295.20 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 341.38 | 338.68 | 334.39 | 315.53 | 295.20 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 341.38 + — – —
= 341.38
The cash conversion cycle for M/I Homes Inc has shown a gradual increase over the years, starting at 295.20 days on December 31, 2020, and reaching 341.38 days by the end of December 31, 2024. This indicates that the company is taking longer to convert its investments in inventory and accounts receivable into cash. A longer cash conversion cycle may imply inefficiencies in managing working capital and could lead to increased financing costs. M/I Homes Inc should carefully monitor and manage its cash conversion cycle to optimize its working capital efficiency and overall financial performance.
Peer comparison
Dec 31, 2024