Meritage Corporation (MTH)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 907,837 | 6,020,850 | 5,676,260 | 4,715,750 | 3,681,770 |
| Total current liabilities | US$ in thousands | 212,477 | 641,619 | 671,843 | 595,896 | 496,445 |
| Current ratio | 4.27 | 9.38 | 8.45 | 7.91 | 7.42 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $907,837K ÷ $212,477K
= 4.27
The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. Meritage Corporation's current ratio has shown a consistent increase over the past years, from 7.42 in December 31, 2020, to 8.45 in December 31, 2022, and then a significant jump to 9.38 in December 31, 2023. This indicates that the company has a strong liquidity position and is well-equipped to meet its short-term obligations. However, there was a notable decrease in the current ratio to 4.27 in December 31, 2024, which may suggest a potential change in the company's liquidity position. Further analysis of the company's financial statements and operations would be necessary to understand the reasons behind this decline and its potential impact on the company's financial stability.
Peer comparison
Dec 31, 2024