M/I Homes Inc (MHO)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.55 | 1.60 | 1.79 | 1.99 | 2.10 |
Based on the provided data, M/I Homes Inc has consistently maintained a strong solvency position over the years in terms of its debt-related ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio are all at 0.00 for each year from 2020 to 2024, indicating that the company has no debt relative to its assets, capital, or equity.
Furthermore, the Financial leverage ratio has been decreasing steadily from 2.10 in 2020 to 1.55 in 2024. This indicates that the company's reliance on debt to finance its operations has been decreasing over time, leading to a lower financial risk and a stronger solvency position.
Overall, the solvency ratios suggest that M/I Homes Inc has a very low level of debt and is in a stable financial position with a conservative approach to leverage, which is a positive indicator for the company's financial health and ability to meet its financial obligations in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 25.66 | 16.38 | 283.31 | 240.40 | 33.54 |
The interest coverage ratio for M/I Homes Inc has experienced significant fluctuations over the past five years. The ratio was 33.54 in December 2020, indicating the company was comfortably able to cover its interest payments. Subsequently, there was a substantial improvement in the ratio to 240.40 in December 2021, followed by an even higher ratio of 283.31 in December 2022, reflecting a strong ability to cover interest expenses.
However, there was a notable decline in the interest coverage ratio to 16.38 in December 2023, suggesting a potential decrease in the company's ability to cover its interest payments with operating income. The ratio then improved to 25.66 in December 2024, but remained below the levels seen in the previous years.
Overall, the fluctuation in M/I Homes Inc's interest coverage ratio indicates varying levels of financial risk and operational performance over the years, with the company showing both strengths and weaknesses in managing its interest obligations.