M/I Homes Inc (MHO)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 19,339 | 29,701 | 20,089 | 8,196 | 13,531 |
| Total assets | US$ in thousands | 4,022,440 | 3,714,920 | 3,239,850 | 2,643,040 | 2,105,590 |
| Debt-to-assets ratio | 0.00 | 0.01 | 0.01 | 0.00 | 0.01 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $19,339K ÷ $4,022,440K
= 0.00
The debt-to-assets ratio for MI Homes Inc. has been declining over the past five years from 0.36 in 2019 to 0.21 in 2023. This indicates that the company has been reducing its reliance on debt in relation to its assets over time. A decreasing trend in the debt-to-assets ratio is generally seen as positive as it suggests improved financial health and lower financial risk.
A lower debt-to-assets ratio signifies that the company's assets are primarily financed by equity rather than debt. This could indicate a stronger financial position, better ability to weather economic downturns, and a lower risk of default. It also implies that the company may have more financial flexibility for future investments or operational needs without the burden of high debt levels.
Overall, the decreasing trend in MI Homes Inc.'s debt-to-assets ratio reflects a positive financial management strategy aimed at reducing debt levels and strengthening the company's financial position.
Peer comparison
Dec 31, 2023