M/I Homes Inc (MHO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 169,144 | 249,041 | 267,160 | 228,734 | 140,504 |
| Quick ratio | 4.33 | 1.45 | 1.10 | 1.15 | 0.05 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($732,604K
+ $—K
+ $—K)
÷ $169,144K
= 4.33
The quick ratio of MI Homes Inc. has shown a notable improvement over the past five years. The ratio increased from 0.48 in 2019 to 1.63 in 2023. This suggests that the company's short-term liquidity position has strengthened significantly.
A quick ratio above 1 indicates that MI Homes Inc. has an adequate level of liquid assets to cover its current liabilities. In 2023, the company had $1.63 in quick assets for every $1 of current liabilities, reflecting a healthy liquidity position.
The improvement in the quick ratio from 2022 to 2023 highlights the company's ability to efficiently manage its short-term obligations and convert current assets into cash quickly.
Overall, the trend in the quick ratio for MI Homes Inc. signals a positive development in the company's liquidity management over the past five years, providing a favorable indication of its financial health and ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023