Meritage Corporation (MTH)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	4,784,030	4,780,620	4,767,860	4,708,730	4,618,594	4,872,754	4,816,384	4,592,737	4,495,267	4,068,837	3,828,830	3,794,254	3,712,000	3,738,190	3,744,457	3,625,049	3,530,304	3,354,994	3,215,468	3,108,833
Inventory	US$ in thousands	5,728,780	5,457,100	5,331,780	5,037,320	4,721,290	4,501,360	4,348,600	4,355,180	4,358,260	4,726,260	4,474,060	4,027,950	3,734,410	3,593,010	3,251,790	2,975,120	2,778,040	2,741,020	2,733,430	2,789,790
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,784,030K ÷ $5,728,780K
= 0.84

The inventory turnover ratio for Meritage Corporation has fluctuated over the past few years. It started at a relatively low level of 1.11 on March 31, 2020, and gradually increased to peak at 1.27 on December 31, 2020. However, since then, the inventory turnover ratio has been declining. It decreased to 0.99 on December 31, 2021, and continued to drop further to 0.84 by December 31, 2024.

A decreasing trend in inventory turnover ratio typically indicates that the company is holding onto its inventory for a longer period, which may suggest inefficiencies in managing inventory or slower sales. A low inventory turnover ratio could also lead to increased carrying costs and potential obsolescence risks.

It is important for Meritage Corporation to closely monitor its inventory turnover ratio and take necessary steps to improve inventory management practices to ensure optimal utilization of its resources and efficient operations.