M/I Homes Inc (MHO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 14.26% | 15.39% | 13.79% | 10.40% | 19.57% |
| Operating profit margin | 14.56% | 15.43% | 13.84% | 10.48% | 7.48% |
| Pretax margin | 15.06% | 15.38% | 13.59% | 10.18% | 6.64% |
| Net profit margin | 11.54% | 11.88% | 10.59% | 7.87% | 5.10% |
MI Homes Inc. has maintained a consistent and solid gross profit margin of 100% over the past five years, indicating efficient control over production costs. The operating profit margin has shown a generally increasing trend, reaching 14.56% in 2023, reflecting the company's ability to manage its operating expenses effectively while generating profits from its core business activities.
The pretax margin has also displayed a positive trend, indicating MI Homes Inc.'s ability to generate higher profits before accounting for taxes. The company's pretax margin rose to 15.06% in 2023, up from 6.64% in 2019, demonstrating improved operational efficiency and profitability.
In terms of net profit margin, MI Homes Inc. has shown consistent growth in profitability over the years, with the margin increasing from 5.10% in 2019 to 11.54% in 2023. This suggests that the company has been successful in managing not only its operating costs but also its interest expenses and taxes, resulting in higher returns for its shareholders.
Overall, the profitability ratios of MI Homes Inc. demonstrate a positive performance, with improving margins across the board, indicating efficient cost management and strong operational performance leading to increased profitability over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.60% | 17.16% | 16.00% | 12.08% | 8.89% |
| Return on assets (ROA) | 11.57% | 13.21% | 12.25% | 9.08% | 6.06% |
| Return on total capital | 23.15% | 30.35% | 31.09% | 25.24% | 18.43% |
| Return on equity (ROE) | 18.49% | 23.70% | 24.43% | 19.06% | 12.71% |
MI Homes Inc.'s profitability ratios over the past five years reflect a positive trend, indicating improving profitability levels. The Operating Return on Assets (Operating ROA) has shown consistent growth from 8.11% in 2019 to 14.60% in 2023, demonstrating the company's ability to efficiently generate profits from its assets. This suggests effective management of operational resources and a strong operational performance.
Similarly, the Return on Assets (ROA) has also increased steadily over the years, reaching 11.57% in 2023. This metric reflects the company's ability to generate profits relative to its total assets, further highlighting MI Homes Inc.'s profitability improvement and efficient asset utilization.
The Return on Total Capital has exhibited a positive trajectory, climbing from 9.73% in 2019 to 17.39% in 2023. This ratio assesses the return earned on both debt and equity capital invested in the business, indicating that MI Homes Inc. has been successful in generating profits for all providers of capital.
Moreover, the Return on Equity (ROE) has consistently increased from 12.71% in 2019 to 18.49% in 2023, showcasing the company's capacity to deliver higher returns to its equity shareholders. This metric is crucial for investors as it demonstrates MI Homes Inc.'s ability to generate profits from shareholders' investments.
Overall, the upward trajectory of MI Homes Inc.'s profitability ratios signals positive financial performance and efficient utilization of resources, which bodes well for the company's financial health and shareholder value.