Meritage Corporation (MTH)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,137,610 | 6,475,460 | 6,439,460 | 6,284,020 | 6,285,610 | 5,791,540 | 5,472,310 | 5,319,250 | 5,116,050 | 5,027,110 | 4,905,100 | 4,684,410 | 4,506,306 | 4,231,586 | 4,035,343 | 3,869,074 | 3,677,839 | 2,534,947 | 2,479,321 | 2,488,325 |
| Total current assets | US$ in thousands | 921,227 | 1,048,760 | 1,163,240 | 957,210 | 861,561 | 299,387 | 272,147 | 520,395 | 618,335 | 562,291 | 684,374 | 716,433 | 745,621 | 609,979 | 484,622 | 797,321 | 319,466 | 454,812 | 407,427 | 327,499 |
| Total current liabilities | US$ in thousands | 641,619 | 755,408 | 662,000 | 653,181 | 671,843 | 733,506 | 729,393 | 717,313 | 595,896 | 578,984 | 531,941 | 541,167 | 496,445 | 467,668 | 439,690 | 405,496 | 405,278 | 451,615 | 360,854 | 343,496 |
| 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 | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,137,610K ÷ ($921,227K – $641,619K)
= 21.95
The working capital turnover of Meritage Homes Corp. has shown fluctuations over the past eight quarters. The ratio peaked at 14.66 in Q4 2022, indicating that the company generated $14.66 in revenue for every $1 of working capital invested during that period. Subsequently, there was a decline in Q1 2023 to 11.67, followed by further fluctuations in Q2 and Q3 2023 at 8.72 and 11.23, respectively.
It is important to note the absence of data for Q2 and Q3 2022, which limits the ability to draw a comprehensive trend analysis. Overall, the working capital turnover ratio demonstrates the efficiency with which Meritage Homes Corp. is utilizing its working capital to generate revenue. The company may consider further analyzing the reasons behind the fluctuations to optimize its working capital management strategies.
Peer comparison
Dec 31, 2023