Meritage Corporation (MTH)
Working capital 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 current assets | US$ in thousands | 907,837 | 6,020,850 | 5,676,260 | 4,715,750 | 3,681,770 |
Total current liabilities | US$ in thousands | 212,477 | 641,619 | 671,843 | 595,896 | 496,445 |
Working capital turnover | 9.15 | 1.14 | 1.26 | 1.25 | 1.41 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,363,870K ÷ ($907,837K – $212,477K)
= 9.15
Meritage Corporation's working capital turnover has shown some fluctuations over the years. It decreased from 1.41 in December 31, 2020, to 1.25 in December 31, 2021, and then slightly increased to 1.26 in December 31, 2022. However, there was a notable decrease to 1.14 in December 31, 2023.
The most significant change occurred in December 31, 2024, where the working capital turnover surged to a remarkably high value of 9.15. Such a substantial increase could indicate a more efficient use of working capital during that period, possibly due to improved inventory management, faster collection of receivables, or more efficient payment of payables.
Overall, while the working capital turnover ratio has varied over the years for Meritage Corporation, the notable spike in December 31, 2024, suggests a potential improvement in the company's working capital management efficiency.
Peer comparison
Dec 31, 2024