M/I Homes Inc (MHO)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 706,094 | 587,222 | 637,451 | 518,296 | 324,769 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,939,680 | 2,516,940 | 2,070,720 | 1,624,180 | 1,258,700 |
| Return on total capital | 24.02% | 23.33% | 30.78% | 31.91% | 25.80% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $706,094K ÷ ($—K + $2,939,680K)
= 24.02%
M/I Homes Inc has shown a varying trend in its return on total capital over the years. The return on total capital was 25.80% as of December 31, 2020, which increased to 31.91% by December 31, 2021. Subsequently, there was a slight decrease to 30.78% by December 31, 2022. However, in the following two years, the return on total capital experienced a decline, dropping to 23.33% as of December 31, 2023, and further to 24.02% by December 31, 2024. It is essential for investors and stakeholders to monitor these fluctuations in return on total capital as it indicates the efficiency of the company in generating profits from its total capital employed.
Peer comparison
Dec 31, 2024