M/I Homes Inc (MHO)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	587,222	637,457	511,270	319,727	187,400
Long-term debt	US$ in thousands	19,339	29,701	20,089	8,196	13,531
Total stockholders’ equity	US$ in thousands	2,516,940	2,070,720	1,624,180	1,258,700	1,003,480
Return on total capital		23.15%	30.35%	31.09%	25.24%	18.43%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $587,222K ÷ ($19,339K + $2,516,940K)
= 23.15%

MI Homes Inc.'s return on total capital has fluctuated over the past five years, ranging from 9.73% in 2019 to 21.80% in 2022. The return on total capital was 17.39% in 2023, which indicates that the company generated $0.1739 in profit for every $1 of total capital invested in the business during the year. This suggests that the company is effectively utilizing its total capital to generate returns for its investors and stakeholders. While there has been some variation in performance over the years, the upward trend from 2019 to 2022 followed by a slight decrease in 2023 may indicate fluctuations in profitability or changes in the capital structure. Overall, a return on total capital above 15% signifies strong financial performance and efficient capital utilization by MI Homes Inc.