Meritage Corporation (MTH)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 651,555 | 921,227 | 861,561 | 618,335 | 745,621 |
| Short-term investments | US$ in thousands | — | — | 11,753 | 5,764 | — |
| Total current liabilities | US$ in thousands | 212,477 | 641,619 | 671,843 | 595,896 | 496,445 |
| Cash ratio | 3.07 | 1.44 | 1.30 | 1.05 | 1.50 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($651,555K
+ $—K)
÷ $212,477K
= 3.07
The cash ratio for Meritage Corporation has fluctuated over the past five years, starting at 1.50 in December 31, 2020, decreasing to 1.05 by December 31, 2021, then increasing to 1.30 by December 31, 2022, further rising to 1.44 by December 31, 2023, and notably jumping to 3.07 by December 31, 2024. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. The increasing trend in the cash ratio indicates that Meritage Corporation has improved liquidity and is better positioned to meet its short-term obligations from its cash reserves. However, a sudden significant increase in the cash ratio, as seen in 2024, may prompt further investigation into the company's cash management practices or potential changes in its operations.
Peer comparison
Dec 31, 2024