M/I Homes Inc (MHO)

Financial leverage 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
Total assets	US$ in thousands	4,022,440	4,003,370	3,861,750	3,762,370	3,714,920	3,587,910	3,493,320	3,306,510	3,239,850	3,046,600	2,861,410	2,709,560	2,643,040	2,420,560	2,327,710	2,198,960	2,105,590	2,181,600	2,089,210	2,071,780
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
Financial leverage ratio		1.60	1.65	1.68	1.72	1.79	1.85	1.92	1.94	1.99	1.97	1.95	2.00	2.10	2.06	2.13	2.12	2.10	2.29	2.31	2.38

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,022,440K ÷ $2,516,940K
= 1.60

The financial leverage ratio of MI Homes Inc. has been gradually increasing over the past eight quarters, indicating a higher level of financial leverage. This suggests that the company is relying more on debt financing to fund its operations and investments. A higher financial leverage ratio can be seen as a risky strategy, as it exposes the company to higher financial risk and potential volatility in earnings and cash flows. It is important for investors and stakeholders to closely monitor the trend in the financial leverage ratio and assess the company's ability to manage its debt levels effectively.