GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » M/I Homes Inc (NYSE:MHO) » Definitions » ROA %

MHO (M/I Homes) ROA % : 13.73% (As of Jun. 2024)


View and export this data going back to 1993. Start your Free Trial

What is M/I Homes ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. M/I Homes's annualized Net Income for the quarter that ended in Jun. 2024 was $587 Mil. M/I Homes's average Total Assets over the quarter that ended in Jun. 2024 was $4,276 Mil. Therefore, M/I Homes's annualized ROA % for the quarter that ended in Jun. 2024 was 13.73%.

The historical rank and industry rank for M/I Homes's ROA % or its related term are showing as below:

MHO' s ROA % Range Over the Past 10 Years
Min: 3.82   Med: 5.86   Max: 14.11
Current: 12.94

During the past 13 years, M/I Homes's highest ROA % was 14.11%. The lowest was 3.82%. And the median was 5.86%.

MHO's ROA % is ranked better than
87.76% of 98 companies
in the Homebuilding & Construction industry
Industry Median: 4.19 vs MHO: 12.94

M/I Homes ROA % Historical Data

The historical data trend for M/I Homes's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

M/I Homes ROA % Chart

M/I Homes Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.18 10.10 13.49 14.11 12.03

M/I Homes Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.38 14.14 10.49 13.41 13.73

Competitive Comparison of M/I Homes's ROA %

For the Residential Construction subindustry, M/I Homes's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


M/I Homes's ROA % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, M/I Homes's ROA % distribution charts can be found below:

* The bar in red indicates where M/I Homes's ROA % falls into.



M/I Homes ROA % Calculation

M/I Homes's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=465.365/( (3714.923+4022.44)/ 2 )
=465.365/3868.6815
=12.03 %

M/I Homes's annualized ROA % for the quarter that ended in Jun. 2024 is calculated as:

ROA %=Net Income (Q: Jun. 2024 )/( (Total Assets (Q: Mar. 2024 )+Total Assets (Q: Jun. 2024 ))/ count )
=586.984/( (4211.951+4340.07)/ 2 )
=586.984/4276.0105
=13.73 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2024) net income data. ROA % is displayed in the 30-year financial page.


M/I Homes  (NYSE:MHO) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2024 )
=Net Income/Total Assets
=586.984/4276.0105
=(Net Income / Revenue)*(Revenue / Total Assets)
=(586.984 / 4439.124)*(4439.124 / 4276.0105)
=Net Margin %*Asset Turnover
=13.22 %*1.0381
=13.73 %

Note: The Net Income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (Jun. 2024) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


M/I Homes ROA % Related Terms

Thank you for viewing the detailed overview of M/I Homes's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


M/I Homes Business Description

Traded in Other Exchanges
Address
4131 Worth Avenue, Suite 500, Columbus, OH, USA, 43219
M/I Homes Inc is an American construction company that focuses on residential construction. It consists of two distinct operations: homebuilding and financial services. The homebuilding operations are spread into the Midwest, Mid-Atlantic, and Southern regions and the financial services operations support homebuilding operations by providing mortgage loans and title services to the customers of homebuilding operations. Homebuilding operations comprise the most significant portion of the revenue. The company builds homes and communities that target entry-level, move-up, and luxury homebuyers.
Executives
Robert H Schottenstein director, officer: Chairman, CEO & President
Ann Marie Hunker officer: Principal Accounting Officer
Phillip G Creek director, officer: Ex. Vice President and CFO
Susan E Krohne officer: Chief Legal Officer, Secretary 4131 WORTH AVE, SUITE 500, COLUMBUS OH 43219
Bruce A Soll director 17655 WATERVIEW PKWY, DALLAS TX 75252
Norman L Traeger director
J Thomas Mason director, officer: Ex. VP & Chief Legal Officer 3 EASTON OVAL, SUITE 500, COLUMBUS OH 43219
Kumi D Walker director 17 STANBERRY AVENUE, BEXLEY OH 43209
William H Carter director C/O MOMENTIVE SPECIALTY CHEMICALS INC., 180 EAST BROAD STREET, COLUMBUS OH 43215
Michael P Glimcher director C/O GLIMCHER REALTY TRUST, 180 EAST BROAD STREET, COLUMBUS OH 43215
Nancy J Kramer director
Friedrich Km Bohm director
Elizabeth K Ingram director 555 W. GOODALE STREET, COLUMBUS OH 43215
Thomas D Igoe director
Sharen J Turney director THREE LIMITED PARKWAY, COLUMBUS OH 43230

M/I Homes Headlines

From GuruFocus

Q2 2023 M/I Homes Inc Earnings Call Transcript

By GuruFocus Research 02-10-2024

M/I Homes Inc (MHO) Trading Down 3.56% on Sep 11

By GuruFocus Research 09-11-2024

Q3 2022 M/I Homes Inc Earnings Call Transcript

By GuruFocus Research 02-10-2024

M/I Homes Inc Annual Shareholders Meeting Transcript

By GuruFocus Research 02-10-2024

Q4 2023 M/I Homes Inc Earnings Call Transcript

By GuruFocus Research 02-10-2024

M/I Homes Inc (MHO) Stock Price Down 3.4% on Sep 25

By GuruFocus Research 09-25-2024

Q3 2023 M/I Homes Inc Earnings Call Transcript

By GuruFocus Research 02-10-2024