M/I Homes Inc (MHO)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	732,604	736,252	668,287	542,564	310,542	67,761	188,755	218,606	236,068	221,157	371,806	292,900	260,710	202,512	94,023	21,184	5,883	33,451	20,393	41,931
Short-term investments	US$ in thousands	—	47	1,739	4,284	51,554	51,700	55,625	57,309	57,121	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	169,144	200,600	186,396	223,618	249,041	189,371	194,602	203,650	267,160	211,300	167,119	176,200	228,734	136,119	134,200	145,055	140,504	108,594	104,000	104,026
Cash ratio		4.33	3.67	3.59	2.45	1.45	0.63	1.26	1.35	1.10	1.05	2.22	1.66	1.14	1.49	0.70	0.15	0.04	0.31	0.20	0.40

December 31, 2023 calculation

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

Based on the data provided, the cash ratio of MI Homes Inc. has shown an increasing trend over the past eight quarters. The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has consistently improved from 0.61 in Q1 2022 to 1.63 in Q4 2023.

A cash ratio greater than 1 indicates that the company has more cash and cash equivalents than its current liabilities, reflecting a strong liquidity position. MI Homes Inc.'s increasing cash ratio suggests that the company has been effectively managing its cash resources and maintaining sufficient liquidity to meet its short-term obligations.

The significant improvement in the cash ratio over the quarters indicates that MI Homes Inc. has enhanced its ability to cover its short-term liabilities with its available cash on hand. This positive trend is a favorable indicator of the company's financial health and its capacity to withstand potential financial challenges or capitalize on strategic opportunities in the near term.