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.