Meritage Corporation (MTH)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 437.08 | 416.65 | 408.17 | 390.47 | 373.12 | 337.18 | 329.55 | 346.12 | 353.88 | 423.97 | 426.51 | 387.48 | 367.20 | 350.82 | 316.98 | 299.56 | 287.22 | 298.20 | 310.28 | 327.54 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 437.08 | 416.65 | 408.17 | 390.47 | 373.12 | 337.18 | 329.55 | 346.12 | 353.88 | 423.97 | 426.51 | 387.48 | 367.20 | 350.82 | 316.98 | 299.56 | 287.22 | 298.20 | 310.28 | 327.54 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 437.08 + — – —
= 437.08
The cash conversion cycle of Meritage Corporation has shown fluctuations over the years, ranging from a low of 287.22 days at the end of December 2020 to a high of 437.08 days at the end of December 2024. The trend indicates that the cash conversion cycle has generally been increasing over the period, with some minor variations in between.
A cash conversion cycle measures how long a company takes to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle can indicate inefficiencies in managing working capital, which may lead to increased costs or cash flow constraints.
Meritage Corporation's increasing cash conversion cycle suggests potential challenges in managing its working capital effectively. It may be taking longer for the company to convert its investments into cash, which could impact its liquidity position and overall financial health. Management should closely monitor and address factors contributing to the lengthening of the cash conversion cycle to improve efficiency and optimize cash flow management.
Peer comparison
Dec 31, 2024