Meritage Corporation (MTH)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	6,137,610	6,475,460	6,439,460	6,284,020	6,285,610	5,791,540	5,472,310	5,319,250	5,116,050	5,027,110	4,905,100	4,684,410	4,506,306	4,231,586	4,035,343	3,869,074	3,677,839	2,534,947	2,479,321	2,488,325
Property, plant and equipment	US$ in thousands	48,953	50,822	47,312	41,702	38,635	39,437	39,030	38,299	37,340	36,595	36,224	37,308	38,933	42,730	46,299	49,180	50,606	53,111	54,157	53,798
Fixed asset turnover		125.38	127.41	136.11	150.69	162.69	146.86	140.21	138.89	137.01	137.37	135.41	125.56	115.75	99.03	87.16	78.67	72.68	47.73	45.78	46.25

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,137,610K ÷ $48,953K
= 125.38

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. A higher ratio indicates better efficiency in utilizing fixed assets.

Looking at Meritage Homes Corp.'s fixed asset turnover ratio over the past eight quarters, we observe some fluctuations but overall a stable trend. The ratio ranged from 1.21 to 1.46 during this period.

In Q2 and Q4 of 2023, the fixed asset turnover was relatively high at 1.46 and 1.42, respectively, suggesting that Meritage Homes Corp. generated $1.46 and $1.42 in sales for every dollar invested in fixed assets during those quarters.

Overall, the company's fixed asset turnover ratio has been fairly consistent, indicating effective management of fixed assets to drive sales. However, it is essential to analyze this ratio in conjunction with other financial metrics to obtain a holistic view of the company's operational efficiency and performance.