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.