M/I Homes Inc (MHO)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	587,222	637,457	511,270	319,727	187,400
Interest expense	US$ in thousands	15,823	2,250	2,156	9,684	21,375
Interest coverage		37.11	283.31	237.14	33.02	8.77

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $587,222K ÷ $15,823K
= 37.11

The interest coverage ratio for MI Homes Inc. has shown significant fluctuations over the years. In 2022, the interest coverage ratio was 291.47, indicating the company had substantially more operating income available to cover its interest expenses. However, the lack of data for 2021 and 2019 makes it difficult to assess the trend accurately. In 2020, the interest coverage ratio dropped to 48.13, suggesting a lower ability to meet interest obligations from operating income. It is essential for the company to maintain a healthy interest coverage ratio to demonstrate its ability to service its debt obligations and protect against financial risk. Further analysis of the company's financial performance and debt management strategies would provide a better understanding of its overall financial health.