Meritage Corporation (MTH)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.13 | 0.14 | 0.13 | 0.35 | 0.34 | 0.31 | 0.32 | 0.12 | 0.13 | 0.14 | 0.15 | 0.16 | 0.17 | 0.16 | 0.15 | 0.14 | 0.14 | 0.14 | 0.14 | 0.40 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 21.95 | 22.07 | 12.85 | 20.67 | 33.13 | — | — | — | 228.00 | — | 32.18 | 26.73 | 18.08 | 29.73 | 89.81 | 9.87 | — | 792.91 | 53.24 | — |
The activity ratios of Meritage Homes Corp. provide insight into the efficiency of the company in managing its inventory, receivables, payables, and working capital.
1. Inventory Turnover: The data for Q4 2023 is not available, so no analysis can be performed for this ratio. An increasing trend in inventory turnover would indicate that Meritage Homes is selling its inventory more quickly.
2. Receivables Turnover: The receivables turnover shows how efficiently the company collects payments from its customers. The higher the ratio, the faster the company is able to collect its receivables. Meritage Homes' receivables turnover has been fluctuating but generally shows a solid collection performance.
3. Payables Turnover: This ratio reflects how quickly the company pays its suppliers. A higher payables turnover indicates that the company is managing its payables efficiently. Meritage Homes' payables turnover has been relatively stable, indicating consistent management of supplier payments.
4. Working Capital Turnover: This ratio measures how efficiently the company utilizes its working capital to generate sales. A higher turnover indicates better utilization of working capital. Meritage Homes' working capital turnover has fluctuated, possibly indicating changing efficiency in capital deployment over the periods analyzed.
Overall, Meritage Homes Corp. demonstrates a strong performance in managing its receivables and payables, with room for improvement in working capital turnover. It will be important for the company to monitor these ratios to ensure efficient operations and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 2,794.65 | 2,703.23 | 2,775.36 | 1,053.95 | 1,072.35 | 1,192.81 | 1,137.16 | 3,136.14 | 2,906.61 | 2,650.69 | 2,409.31 | 2,252.14 | 2,149.09 | 2,342.47 | 2,411.52 | 2,532.75 | 2,549.99 | 2,690.44 | 2,609.16 | 908.05 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Days of Inventory on Hand (DOH) for Meritage Homes Corp. is not provided in the data table, making it impossible to analyze the efficiency of inventory management for the company over the given periods.
Days of Sales Outstanding (DSO) for Meritage Homes Corp. has been relatively stable over the quarters, ranging from a low of 10.65 days in Q1 2022 to a high of 15.94 days in Q4 2023. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally a positive sign of efficient credit management.
Number of Days of Payables for Meritage Homes Corp. has shown some variability over the quarters, with the number of days ranging from a low of 20.98 days in Q2 2023 to a high of 32.66 days in Q2 2022. A lower number of days of payables suggests that the company is taking longer to pay its suppliers, which could indicate potential liquidity issues or strained relationships with vendors.
Overall, while the DSO for Meritage Homes Corp. appears to be relatively stable, further improvement in managing payables could enhance the company's overall liquidity position and working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.97 | 1.05 | 1.06 | 1.07 | 1.09 | 1.04 | 1.03 | 1.05 | 1.06 | 1.10 | 1.14 | 1.16 | 1.17 | 1.15 | 1.14 | 0.99 | 1.08 | 0.70 | 0.72 | 0.73 |
The fixed asset turnover ratio for Meritage Homes Corp. has shown a general increasing trend over the past eight quarters, ranging from 1.21 to 1.46. This suggests that the company has become more efficient in generating sales revenue from its fixed assets.
On the other hand, the total asset turnover ratio has shown some fluctuation but has generally remained above 1, indicating that the company is effectively utilizing its total assets to generate sales.
Overall, the trend in both ratios is positive, reflecting increasing efficiency and effectiveness in utilizing assets to generate revenue for Meritage Homes Corp.