M/I Homes Inc (MHO)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 821,570 | 732,804 | 311,542 | 236,368 | 260,810 |
| Short-term investments | US$ in thousands | — | 3,617 | 51,554 | 57,121 | 1,664 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 198,579 | 289,806 | 228,597 | 244,505 | 185,669 |
| Quick ratio | 4.14 | 2.54 | 1.59 | 1.20 | 1.41 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($821,570K
+ $—K
+ $—K)
÷ $198,579K
= 4.14
The quick ratio of M/I Homes Inc has exhibited fluctuations over the past five years. The ratio was 1.41 as of December 31, 2020, indicating that the company had $1.41 in liquid assets available to cover each dollar of current liabilities. This suggests a relatively healthy liquidity position.
By December 31, 2021, the quick ratio decreased to 1.20, potentially signaling a slight decrease in the company's ability to cover its short-term obligations with liquid assets. However, the ratio improved significantly to 1.59 by December 31, 2022, indicating a better liquidity position compared to the previous year.
The quick ratio further improved in the subsequent years, reaching 2.54 by December 31, 2023, and significantly increasing to 4.14 by December 31, 2024. These higher ratios suggest a strong ability to meet short-term obligations using liquid assets, possibly indicating improved efficiency in managing current liabilities and maintaining liquidity reserves.
Overall, the trend in M/I Homes Inc's quick ratio demonstrates fluctuations in liquidity over the years, with an improving trend towards the latter years, highlighting the company's ability to manage short-term obligations effectively.
Peer comparison
Dec 31, 2024