M/I Homes Inc (MHO)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	19,339	21,150	23,732	27,060	29,701	31,991	33,217	16,766	20,089	15,975	16,807	12,322	8,196	9,892	11,560	12,914	13,531	14,328	—	—
Total stockholders’ equity	US$ in thousands	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	1,003,480	954,641	904,240	871,462
Debt-to-capital ratio		0.01	0.01	0.01	0.01	0.01	0.02	0.02	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.00	0.00

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 gradually decreasing over the past eight quarters, indicating a positive trend towards lower reliance on debt financing relative to the company's total capital structure. The ratio has decreased from 0.34 in Q1 2022 to 0.25 in Q4 2023. This suggests that the company has been effectively managing its debt levels in relation to its overall capital base.

A lower debt-to-capital ratio indicates that MI Homes Inc. has a smaller proportion of debt compared to its total capital, which can imply lower financial risk and greater financial stability. It may also reflect positively on the company's creditworthiness and ability to meet its financial obligations.

Overall, the declining trend in the debt-to-capital ratio for MI Homes Inc. suggests that the company is maintaining a prudent approach to managing its capital structure and debt levels, which is a positive signal for investors and stakeholders.