Meritage Corporation (MTH)

Short-term

Turnover ratios

Inventory Turnover Ratio Analysis:

The inventory turnover ratio for Meritage Corporation has been fluctuating over the years. It started at a low of 1.11 on March 31, 2020, increased gradually, peaked at 1.27 on December 31, 2020, and then started declining. The ratio was at its lowest point of 0.84 on December 31, 2024. This indicates that the company took longer to sell its inventory at the end of the period, which may lead to obsolete or excess inventory issues.

Receivables Turnover Ratio Analysis:

Unfortunately, no data is available for the receivables turnover ratio for Meritage Corporation. This lack of information prevents us from evaluating how efficiently the company is collecting payments from its customers.

Payables Turnover Ratio Analysis:

Similar to receivables turnover, there is no data provided for the payables turnover ratio. This missing information limits our ability to assess how quickly the company is paying off its suppliers.

Working Capital Turnover Ratio Analysis:

The working capital turnover ratio for Meritage Corporation has shown significant fluctuations. The ratio spiked to 21.62 on June 30, 2020, indicating that the company generated a high level of revenue relative to its working capital during that period. However, the ratio has since declined to more moderate levels, with some notable fluctuations. For instance, on September 30, 2023, the ratio increased sharply to 10.52, suggesting a significant increase in revenue generated relative to working capital.

Overall, the working capital turnover ratio fluctuates over time, reflecting changes in the company's efficiency in generating revenue from its working capital.

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Average number of days

The Days of Inventory on Hand (DOH) ratio for Meritage Corporation has fluctuated over the years, indicating varying levels of efficiency in managing its inventory. From March 31, 2020, to June 30, 2022, there was a general decreasing trend in DOH, suggesting an improvement in inventory turnover. However, from September 30, 2022, to December 31, 2024, the DOH ratio increased significantly, peaking at 437.08 days on December 31, 2024. This suggests that the company may be experiencing challenges in efficiently managing its inventory levels during this period.

The Days of Sales Outstanding (DSO) and Number of Days of Payables ratios are not provided in the data, indicating that the company may not have sufficient information available to calculate these ratios or that these ratios may not be deemed as critical for analysis.

Overall, based on the data provided for the Days of Inventory on Hand (DOH) ratio, it appears that Meritage Corporation may have experienced fluctuations in its inventory management efficiency, which could impact its working capital and overall operational performance.

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Long-term

The fixed asset turnover ratio for Meritage Corporation has shown an increasing trend from March 31, 2020, to September 30, 2022, indicating that the company is generating more revenue relative to its investment in fixed assets over time. The peak in the ratio was observed on December 31, 2022. However, there was a significant decline in the ratio from March 31, 2023, to September 30, 2023, potentially suggesting inefficiencies in utilizing fixed assets during that period.

In terms of total asset turnover, the ratio fluctuated over the years, with peaks observed on September 30, 2020, and December 31, 2022. However, there was a general decreasing trend in the total asset turnover ratio from December 31, 2022, to December 31, 2024, indicating that the company's ability to generate sales from its total assets decreased over this period.

Overall, the varying trends in both the fixed asset turnover and total asset turnover ratios suggest changes in Meritage Corporation's efficiency in utilizing its assets to generate revenue, with potential implications for the company's operational performance and financial health.