Meritage Corporation (MTH)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		0.84	0.88	0.89	0.93	0.98	1.08	1.11	1.05	1.03	0.86	0.86	0.94	0.99	1.04	1.15	1.22	1.27	1.22	1.18	1.11
DOH	days	437.08	416.65	408.17	390.47	373.12	337.18	329.55	346.12	353.88	423.97	426.51	387.48	367.20	350.82	316.98	299.56	287.22	298.20	310.28	327.54

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.84
= 437.08

The days of inventory on hand (DOH) for Meritage Corporation have shown some fluctuations over the periods analyzed. The trend indicates that the company has experienced an increase in the number of days it takes to sell its inventory from around 327.54 days on March 31, 2020, to a peak of 437.08 days on December 31, 2024, with some fluctuations in between.

The increase in DOH over the years may suggest that Meritage Corporation could be facing challenges in managing its inventory efficiently. A high DOH value could indicate excess inventory levels, slow-moving inventory, or difficulties in sales and distribution processes.

It is important for the company to closely monitor its inventory management practices to ensure optimal levels of inventory that align with sales trends and minimize the carrying costs associated with excess inventory. Additionally, improving inventory turnover rates could help in enhancing liquidity and profitability for Meritage Corporation.

Further analysis of the reasons behind the fluctuation in DOH and implementation of strategic measures to optimize inventory management could help Meritage Corporation improve its operational efficiency and overall financial performance.