Meritage Corporation (MTH)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,363,870 | 6,113,010 | 6,298,150 | 5,147,330 | 4,506,300 |
| Total assets | US$ in thousands | 7,162,650 | 6,353,130 | 5,772,100 | 4,807,530 | 3,864,400 |
| Total asset turnover | 0.89 | 0.96 | 1.09 | 1.07 | 1.17 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,363,870K ÷ $7,162,650K
= 0.89
The total asset turnover ratio for Meritage Corporation has shown a general decline over the past five years. The ratio decreased from 1.17 in 2020 to 0.89 in 2024. This indicates that the company's ability to generate revenue from its total assets has weakened over the period. A lower total asset turnover ratio may suggest inefficiencies in asset utilization, potentially pointing to issues in managing inventory, accounts receivable, or fixed assets. This trend warrants a closer examination of Meritage Corporation's operational efficiency and asset management practices to identify areas for improvement and enhance overall financial performance.
Peer comparison
Dec 31, 2024