M/I Homes Inc (MHO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 |
| 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 |
| Debt-to-equity 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 | 0.02 | 0.00 | 0.00 |
| 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 |
The solvency ratios of MI Homes Inc. indicate the company's ability to meet its long-term debt obligations and its overall financial risk.
The Debt-to-assets ratio has been relatively stable around 0.23, indicating that approximately 23% of the company's assets are financed by debt. This suggests that MI Homes has a healthy balance between debt and assets, with a lower ratio indicating greater financial stability.
The Debt-to-capital ratio has shown a slight increase over the quarters, reaching 0.30 in Q1 2023. This ratio represents the proportion of the company's capital that is financed by debt. The upward trend may suggest that MI Homes is becoming more leveraged, which could increase financial risk.
The Debt-to-equity ratio has also been increasing steadily, reaching 0.42 in Q1 2023. This ratio indicates the proportion of the company's capital that is financed by equity. The rising trend suggests that MI Homes is relying more on debt financing, which could potentially lead to greater financial vulnerability.
The Financial leverage ratio has been consistently increasing, reaching 1.72 in Q1 2023. This ratio measures the extent to which the company's operations are funded by debt. The rising trend indicates a higher level of financial leverage, which may signal increased financial risk and a higher dependence on debt to finance the business.
In conclusion, based on the solvency ratios, MI Homes Inc. has been gradually increasing its reliance on debt financing, which could potentially impact its financial flexibility and increase its financial risk over time. It is essential for investors and stakeholders to closely monitor these ratios to assess the company's ability to meet its long-term obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 37.11 | 40.91 | 48.29 | 70.45 | 283.30 | 230.59 | 297.98 | 316.60 | 237.12 | 169.68 | 110.48 | 62.52 | 33.02 | 20.65 | 13.91 | 10.54 | 8.77 | 8.26 | 7.85 | 7.58 |
The interest coverage ratio for MI Homes Inc. in Q1 2023 was 3,513.11, indicating a substantial increase compared to the previous quarter's ratio of 291.47 in Q4 2022. This significant improvement suggests that the company's ability to cover its interest expenses with its operating income has strengthened notably. However, data for the remaining quarters of 2023 and 2022 are not available, making it challenging to assess the trend over a more extended period accurately. Further analysis would be needed to determine the underlying reasons driving this surge in interest coverage and to monitor the ratio's stability over time to assess the company's financial health effectively.