M/I Homes Inc (MHO)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 333.71 | 358.39 | 350.88 | 336.17 | 338.67 | 309.80 | 305.99 | 302.57 | 334.39 | 372.85 | 355.10 | 329.81 | 315.53 | 315.02 | 280.98 | 282.23 | 295.20 | 296.21 | 312.67 | 319.31 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 333.71 | 358.39 | 350.88 | 336.17 | 338.67 | 309.80 | 305.99 | 302.57 | 334.39 | 372.85 | 355.10 | 329.81 | 315.53 | 315.02 | 280.98 | 282.23 | 295.20 | 296.21 | 312.67 | 319.31 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 333.71 + — – —
= 333.71
The cash conversion cycle (CCC) of M/I Homes Inc, a key metric in evaluating the efficiency of the company's cash management, has exhibited fluctuations over the specified periods. The CCC represents the number of days it takes for the company to convert its investments in inventory and other resources into cash received from customers.
From March 31, 2020, to September 30, 2021, the CCC showed a decreasing trend, indicating improved efficiency in managing cash flows. However, from June 30, 2022, there was a significant increase in the CCC, peaking at 372.85 days on September 30, 2022. This rise suggests a longer time span for the company to realize cash from its operations, which might signal challenges in inventory management or collections.
Subsequently, there was a slight improvement in the CCC by December 31, 2022, but the metric remained elevated compared to previous periods. The CCC continued to fluctuate between 302.57 days to 358.39 days up to December 31, 2024, reflecting potential irregularities in the company's operating cycle efficiency.
Overall, the analysis of M/I Homes Inc's CCC highlights the importance of closely monitoring cash conversion processes to ensure optimal liquidity and operational effectiveness.
Peer comparison
Dec 31, 2024