Meritage Corporation (MTH)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	651,555	831,559	992,921	905,298	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
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	11,753	11,356	11,223	5,631	5,764	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	212,477	666,771	728,135	767,162	641,619	755,408	662,000	653,181	671,843	733,506	673,872	717,313	595,896	578,984	531,941	541,167	496,445	467,668	439,690	405,496
Cash ratio		3.07	1.25	1.36	1.18	1.44	1.39	1.76	1.47	1.30	0.42	0.42	0.73	1.05	0.97	1.29	1.32	1.50	1.30	1.10	1.97

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 of Meritage Corporation has fluctuated over the past few years, indicating varying levels of liquidity. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

From March 31, 2020, to June 30, 2021, the cash ratio remained relatively stable, ranging from 1.10 to 1.50, suggesting the company had sufficient cash to cover its short-term obligations during this period.

However, from September 30, 2021, to June 30, 2022, the cash ratio decreased significantly, dropping to as low as 0.42. This sharp decline could indicate potential liquidity challenges for the company during this period.

Subsequently, the cash ratio started to improve from December 31, 2022, reaching a high of 3.07 on December 31, 2024. This significant increase in the cash ratio suggests that Meritage Corporation had significantly increased its cash reserves relative to its short-term liabilities, indicating a healthier liquidity position.

Overall, the trend in Meritage Corporation's cash ratio indicates fluctuations in the company's liquidity over the years, with periods of both strength and weakness. Further analysis would be necessary to understand the specific factors driving these fluctuations and their implications for the company's financial health.