M/I Homes Inc (MHO)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	465,365	490,662	396,868	239,874	127,587
Total assets	US$ in thousands	4,022,440	3,714,920	3,239,850	2,643,040	2,105,590
ROA		11.57%	13.21%	12.25%	9.08%	6.06%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $465,365K ÷ $4,022,440K
= 11.57%

Return on assets (ROA) measures the company's ability to generate profit from its assets. In the case of MI Homes Inc., the ROA has shown an increasing trend over the past five years. In 2019, the ROA was at 6.06%, which improved to 9.08% in 2020, further increasing to 12.25% in 2021, then to 13.21% in 2022, and lastly to 11.57% in 2023.

This indicates that the company has been more effective in utilizing its assets to generate earnings over the years. However, the slight decrease in ROA from 2022 to 2023 may suggest a potential decline in efficiency in generating profits relative to the size of its asset base.

Overall, the upward trend in ROA reflects positively on MI Homes Inc.'s operational efficiency and profitability, but it is important for stakeholders to monitor any deviations to ensure sustained performance in the future.