M/I Homes Inc (MHO)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,549,800 | 4,022,440 | 3,714,920 | 3,239,850 | 2,643,040 |
| Total stockholders’ equity | US$ in thousands | 2,939,680 | 2,516,940 | 2,070,720 | 1,624,180 | 1,258,700 |
| Financial leverage ratio | 1.55 | 1.60 | 1.79 | 1.99 | 2.10 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,549,800K ÷ $2,939,680K
= 1.55
The financial leverage ratio of M/I Homes Inc has shown a decreasing trend over the past five years. Starting at 2.10 in December 2020, it has gradually decreased to 1.55 by December 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments, which can be seen as a positive sign of improving financial strength and stability. A lower financial leverage ratio suggests that the company has a stronger equity position relative to its debt, which may provide better protection for investors and creditors in times of economic uncertainty. Overall, the declining trend in M/I Homes Inc's financial leverage ratio reflects a prudent financial management strategy.
Peer comparison
Dec 31, 2024