M/I Homes Inc (MHO)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	563,725	535,538	529,105	500,360	465,365	490,478	483,052	501,889	490,662	473,650	433,072	403,841	396,868	363,568	346,093	292,994	239,874	201,571	165,872	141,610
Total stockholders’ equity	US$ in thousands	4,549,800	2,845,360	2,741,120	2,638,780	2,516,940	2,425,710	2,298,460	2,183,220	2,070,720	1,937,770	1,818,270	1,703,690	1,624,180	1,544,470	1,466,540	1,353,420	1,258,700	1,174,740	1,094,400	1,037,680
ROE		12.39%	18.82%	19.30%	18.96%	18.49%	20.22%	21.02%	22.99%	23.70%	24.44%	23.82%	23.70%	24.43%	23.54%	23.60%	21.65%	19.06%	17.16%	15.16%	13.65%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $563,725K ÷ $4,549,800K
= 12.39%

M/I Homes Inc's return on equity (ROE) has shown a generally upward trend from March 31, 2020, to June 30, 2022, with a gradual increase in percentage points. The ROE increased from 13.65% on March 31, 2020, to a peak of 24.43% on December 31, 2021. This indicates that the company was effectively generating higher returns for its shareholders relative to the equity they invested during this period.

However, starting from March 31, 2022, the ROE began to fluctuate slightly, hovering around the mid-20% range before experiencing a decline to 12.39% on December 31, 2024. This drop suggests a decrease in the company's ability to generate profits from shareholders' equity at the end of the period.

Overall, M/I Homes Inc's ROE performance indicates a period of strong profitability and efficient utilization of equity up to December 31, 2021, followed by some volatility and a notable decrease in returns by the end of December 31, 2024. It would be important to further investigate the factors contributing to these fluctuations and assess the company's strategies to improve ROE in the future.