M/I Homes Inc (MHO)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.01 | 0.01 | 0.00 | 0.01 |
| Debt-to-capital ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Debt-to-equity ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Financial leverage ratio | 1.60 | 1.79 | 1.99 | 2.10 | 2.10 |
Solvency ratios measure a company's ability to meet its long-term debt obligations. Looking at the solvency ratios of MI Homes Inc. over the past five years, we observe a generally improving trend in the company's solvency position.
The Debt-to-assets ratio has decreased steadily from 0.36 in 2019 to 0.21 in 2023. This indicates that MI Homes has reduced its reliance on debt to finance its assets, becoming more asset-rich relative to its debt obligations.
Similarly, the Debt-to-capital ratio has shown a declining trend, decreasing from 0.43 in 2019 to 0.25 in 2023. This suggests that the company has been successful in reducing its debt in relation to its total capital structure.
The Debt-to-equity ratio has also improved significantly, dropping from 0.75 in 2019 to 0.34 in 2023. This indicates that MI Homes has reduced its debt levels in relation to shareholder equity, strengthening its solvency position.
Finally, the Financial leverage ratio has shown a consistent decline, falling from 2.10 in 2019 to 1.60 in 2023. This implies that the company has been decreasing its reliance on debt financing, resulting in lower financial leverage and potentially lower financial risk.
Overall, the improving solvency ratios of MI Homes Inc. suggest that the company has been prudently managing its debt levels and enhancing its financial stability over the past five years. These trends are positive indicators of the company's ability to meet its long-term financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 37.11 | 283.31 | 237.14 | 33.02 | 8.77 |
The interest coverage ratio for MI Homes Inc. has shown a significant improvement over the past five years, with a notable increase from 48.13 in 2020 to 291.47 in 2022. The company's interest coverage ratio measures its ability to meet interest obligations on outstanding debt from its operating income. The substantial increase in the interest coverage ratio indicates that MI Homes Inc. has significantly strengthened its capacity to cover interest payments on its debt with its operating income. While there is missing data for 2021 and 2019, the trend suggests a positive financial performance, reflecting improved profitability and financial health. This enhanced ability to service debt obligations may indicate efficient cost management and operational effectiveness, contributing to the company's overall financial stability and creditworthiness.