Meritage Corporation (MTH)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 907,837 | 6,783,060 | 6,582,840 | 6,185,940 | 6,020,850 | 1,371,110 | 5,960,840 | 5,587,540 | 5,676,260 | 5,479,240 | 5,208,190 | 4,965,700 | 4,715,750 | 4,486,100 | 4,141,660 | 883,648 | 3,681,770 | 3,510,660 | 626,326 | 933,658 |
| 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 |
| Current ratio | 4.27 | 10.17 | 9.04 | 8.06 | 9.38 | 1.82 | 9.00 | 8.55 | 8.45 | 7.47 | 7.73 | 6.92 | 7.91 | 7.75 | 7.79 | 1.63 | 7.42 | 7.51 | 1.42 | 2.30 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $907,837K ÷ $212,477K
= 4.27
The current ratio of Meritage Corporation has shown fluctuations over the periods analyzed. The ratio measures the company's ability to cover its short-term liabilities with its short-term assets.
From March 2020 to September 2021, the current ratio was relatively stable, ranging from 1.42 to 7.79. A ratio above 1 indicates that the company has more current assets than current liabilities to meet its short-term obligations.
There was a notable decrease in the current ratio from March 2021 to September 2021, indicating a potential strain on liquidity during that period. However, from December 2021 onwards, the current ratio increased significantly, reaching a high of 10.17 by September 2024. This indicates an improvement in the company's ability to cover its short-term liabilities with its current assets.
The current ratio peaked in September 2024 at 10.17, which suggests that the company has a strong liquidity position and can easily meet its short-term obligations. However, the ratio dropped to 4.27 by December 2024, indicating a possible decrease in liquidity compared to the previous period.
Overall, Meritage Corporation's current ratio has displayed variability over the analyzed periods, with fluctuations indicating changes in the company's liquidity position. It is essential for the company to maintain a healthy current ratio to ensure sufficient liquidity for operational needs and financial stability.
Peer comparison
Dec 31, 2024