M/I Homes Inc (MHO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 545,595 | 678,651 | 662,109 | 626,522 | 588,105 | 617,482 | 612,646 | 644,852 | 635,498 | 611,995 | 569,920 | 527,820 | 515,269 | 486,828 | 456,996 | 389,850 | 324,769 | 274,169 | 232,544 | 204,303 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 11.99% | 23.85% | 24.15% | 23.74% | 23.37% | 25.46% | 26.65% | 29.54% | 30.69% | 31.58% | 31.34% | 30.98% | 31.72% | 31.52% | 31.16% | 28.80% | 25.80% | 23.34% | 21.25% | 19.69% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $545,595K ÷ ($—K + $4,549,800K)
= 11.99%
Return on total capital is a key financial ratio that indicates the efficiency of a company in generating profits from its invested capital. In the case of M/I Homes Inc, the return on total capital has shown a generally positive trend from March 31, 2020, to December 31, 2022, reaching a peak of 31.72% on December 31, 2021. This indicates that the company was able to generate significant returns relative to its total capital during this period.
However, there has been a decline in the return on total capital from March 31, 2022, to December 31, 2024, with the ratio falling to 11.99% by the end of December 2024. This decline may raise concerns about the company's ability to maintain the same level of profitability in relation to its total capital in the future.
Overall, it is important for stakeholders to closely monitor M/I Homes Inc's return on total capital to assess the company's efficiency in utilizing its capital resources and generating returns for its investors.
Peer comparison
Dec 31, 2024