M/I Homes Inc (MHO)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	2,516,940	2,070,720	1,624,180	1,258,700	1,003,480
Debt-to-capital ratio		0.01	0.01	0.01	0.01	0.01

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $19,339K ÷ ($19,339K + $2,516,940K)
= 0.01

The debt-to-capital ratio of MI Homes Inc. has been exhibiting a declining trend over the past five years, indicating an improved financial position in terms of leverage. The ratio has decreased from 0.43 in 2019 to 0.25 in 2023. This declining trend suggests that the company has been reducing its reliance on debt to finance its operations and investments, which is generally viewed positively by investors and creditors.

A lower debt-to-capital ratio signifies that a company is relying less on debt and has a higher proportion of equity in its capital structure. This can enhance the company's financial stability and reduce the risk of financial distress, especially in times of economic uncertainty.

MI Homes Inc.'s decreasing debt-to-capital ratio over the years may indicate that the company has been effectively managing its debt levels and working towards a more sustainable capital structure. It is essential to continue monitoring this ratio in the future to ensure the company maintains a balanced approach to financing its operations and growth initiatives.