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.
Peer comparison
Dec 31, 2023