Meritage Corporation (MTH)

Payables 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
Cost of revenue (ttm)	US$ in thousands	616,633	607,789	571,903	1,508,275	1,483,445	1,446,242	1,436,059	468,794	468,952	494,757	492,632	482,171	471,821	427,101	413,723	402,043	392,821	387,180	382,727	1,103,211
Payables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover		—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $616,633K ÷ $—K
= —

Meritage Homes Corp.'s payables turnover ratio has been relatively stable over the past eight quarters, ranging from a low of 11.18 in Q2 2022 to a high of 17.40 in Q2 2023. This ratio indicates the company's efficiency in paying its suppliers and managing its trade credit. A higher payables turnover ratio suggests that the company is managing its accounts payable effectively by paying suppliers more frequently.

The increasing trend in the payables turnover ratio from Q2 2022 to Q2 2023 indicates that Meritage Homes Corp. has been improving its payables management efficiency. However, it is essential to note that a very high payables turnover ratio may also indicate that the company is overly aggressive in negotiating payment terms with its suppliers, which could potentially strain relationships or lead to cash flow issues.

Overall, a stable and moderate payables turnover ratio like the one exhibited by Meritage Homes Corp. suggests a healthy balance in managing trade credit, indicating strong financial discipline and operational efficiency in managing cash flow and working capital.