M/I Homes Inc (MHO)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	587,222	621,751	616,911	649,083	637,418	614,974	563,781	522,699	511,235	472,386	452,636	385,129	319,728	272,674	231,001	203,202	187,417	181,114	170,347	162,303
Long-term debt	US$ in thousands	19,339	21,150	23,732	27,060	29,701	31,991	33,217	16,766	20,089	15,975	16,807	12,322	8,196	9,892	11,560	12,914	13,531	14,328	—	—
Total stockholders’ equity	US$ in thousands	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	1,003,480	954,641	904,240	871,462
Return on total capital		23.15%	25.41%	26.57%	29.37%	30.35%	31.22%	30.45%	30.38%	31.09%	30.27%	30.51%	28.20%	25.24%	23.02%	20.89%	19.34%	18.43%	18.69%	18.84%	18.62%

December 31, 2023 calculation

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

Based on the provided data, MI Homes Inc.'s return on total capital has shown a gradual declining trend over the past quarters. The company's return on total capital decreased from 21.80% in Q4 2022 to 17.39% in Q4 2023. This downward trajectory suggests that MI Homes Inc. may be experiencing challenges in generating returns on the capital invested in the business. It is important for the company to analyze the factors contributing to this decline and take corrective actions to improve its efficiency in utilizing capital resources to drive profitability and shareholder value.