Meritage Corporation (MTH)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	616,633	516,450	468,952	471,821	392,821
Inventory	US$ in thousands	4,721,290	4,358,260	3,734,410	2,778,040	2,744,360
Inventory turnover		0.13	0.12	0.13	0.17	0.14

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $616,633K ÷ $4,721,290K
= 0.13

To calculate inventory turnover for Meritage Homes Corp., we need the following information:

1. Cost of Goods Sold (COGS): This figure represents the direct costs attributable to the production of the goods sold by the company during a specific period.
2. Average Inventory: This value is the average of the beginning and ending inventories for the period.

The formula for inventory turnover is:
Inventory Turnover = Cost of Goods Sold / Average Inventory

Without the specific values for COGS and average inventory for the years in question, we are unable to calculate the inventory turnover ratio for Meritage Homes Corp. However, a higher inventory turnover ratio indicates that the company is efficiently selling its inventory and minimizing excess or obsolete stock. Conversely, a lower ratio suggests inefficient management of inventory levels. It is important to track this ratio over time to assess the company's operations and inventory management effectiveness.