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.