M/I Homes Inc (MHO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 26.61% | 25.26% | 25.27% | 24.26% | 22.20% |
| Operating profit margin | 15.67% | 14.30% | 15.43% | 13.84% | 10.48% |
| Pretax margin | 16.29% | 15.06% | 15.38% | 13.59% | 10.18% |
| Net profit margin | 12.51% | 11.54% | 11.88% | 10.59% | 7.87% |
M/I Homes Inc has shown a positive trend in its profitability ratios over the past five years. The gross profit margin has improved consistently from 22.20% in 2020 to 26.61% in 2024, indicating that the company is effectively managing its production costs and generating more profit from sales.
The operating profit margin has also shown steady growth, increasing from 10.48% in 2020 to 15.67% in 2024. This indicates that the company has been able to control its operating expenses while increasing its operational efficiency.
The pretax margin reflects the company's ability to generate profit before accounting for taxes, and this ratio has shown an upward trend, reaching 16.29% in 2024 from 10.18% in 2020. This demonstrates the company's overall profitability and financial health.
Lastly, the net profit margin, which indicates the company's bottom-line profitability after all expenses have been deducted, has also improved from 7.87% in 2020 to 12.51% in 2024. This shows that the company is effectively managing its costs and increasing its profit margins over time.
Overall, M/I Homes Inc has demonstrated strong profitability performance, with improvements in all key profitability ratios over the past five years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.52% | 14.34% | 17.16% | 16.00% | 12.08% |
| Return on assets (ROA) | 12.39% | 11.57% | 13.21% | 12.25% | 9.08% |
| Return on total capital | 24.02% | 23.33% | 30.78% | 31.91% | 25.80% |
| Return on equity (ROE) | 19.18% | 18.49% | 23.70% | 24.43% | 19.06% |
M/I Homes Inc has shown a positive trend in its profitability ratios over the years. The Operating Return on Assets (Operating ROA) has increased from 12.08% in December 2020 to 17.16% in December 2022, indicating that the company is generating more operating income per dollar of assets.
Similarly, the Return on Assets (ROA) has also improved from 9.08% in December 2020 to 12.39% in December 2024, signifying that the company is becoming more efficient in generating profits from its total assets.
The Return on Total Capital measures how efficiently the company is utilizing all its capital to generate profit. M/I Homes Inc's Return on Total Capital has fluctuated but generally exhibited positive levels, ranging from 23.33% in December 2023 to 31.91% in December 2021.
Lastly, the Return on Equity (ROE) reflects the company's ability to generate a profit from shareholders' equity. M/I Homes Inc's ROE has remained relatively stable, hovering around 19-24% over the years, with the highest recorded in December 2021 at 24.43%.
Overall, M/I Homes Inc has shown improvements in its profitability ratios, indicating efficient operations and effective utilization of assets and capital to generate returns for its shareholders.