M/I Homes Inc (MHO)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	732,604	310,542	236,068	260,710	5,883
Short-term investments	US$ in thousands	—	51,554	57,121	1,664	654
Total current liabilities	US$ in thousands	169,144	249,041	267,160	228,734	140,504
Cash ratio		4.33	1.45	1.10	1.15	0.05

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($732,604K + $—K) ÷ $169,144K
= 4.33

The cash ratio of MI Homes Inc. has shown improvement over the past five years, indicating the company's ability to cover its short-term liabilities with its cash and cash equivalents. The ratio increased from 0.48 in 2019 to 1.63 in 2023, which suggests a strengthening liquidity position. This trend demonstrates that MI Homes has been more effective in managing its cash resources in recent years, potentially enhancing its financial flexibility and capacity to meet its obligations without relying heavily on external financing. The rising cash ratio reflects positively on the company's ability to weather unexpected financial challenges and take advantage of opportunities that may arise in the future.