M/I Homes Inc (MHO)

Current 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
Total current assets	US$ in thousands	227,937	256,776	245,364	285,539	298,278	240,004	250,625	255,796	328,573	264,457	216,797	260,088	279,650	177,410	196,524	187,913	183,776	156,713	176,655	194,982
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
Current ratio		1.35	1.28	1.32	1.28	1.20	1.27	1.29	1.26	1.23	1.25	1.30	1.48	1.22	1.30	1.46	1.30	1.31	1.44	1.70	1.87

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $227,937K ÷ $169,144K
= 1.35

The current ratio of MI Homes Inc. has shown a generally increasing trend over the past eight quarters, indicating a strengthening liquidity position. In Q4 2023, the current ratio reached 6.62, the highest level in the provided data, reflecting a significant improvement in the company's ability to meet its short-term obligations with its current assets. The steady increase in the current ratio from Q1 2022 to Q4 2023 suggests improved efficiency in managing current assets and liabilities.

The current ratio exceeding 1 indicates that MI Homes Inc. has more than enough current assets to cover its short-term liabilities, signifying a healthy financial position and reduced liquidity risk. The company's consistently high current ratio values signal that it has sufficient liquidity to handle its obligations, such as paying off creditors and meeting short-term financial commitments.

Overall, the upward trend in MI Homes Inc.'s current ratio suggests a robust liquidity position and financial stability, enhancing its ability to weather economic uncertainties and pursue growth opportunities.