Meritage Corporation (MTH)

Current ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	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	319,466	454,812	407,427	327,499
Total current liabilities	US$ in thousands	641,619	755,408	662,000	653,181	671,843	733,506	729,393	717,313	595,896	578,984	531,941	541,167	496,445	467,668	439,690	405,496	405,278	451,615	360,854	343,496
Current ratio		1.44	1.39	1.76	1.47	1.28	0.41	0.37	0.73	1.04	0.97	1.29	1.32	1.50	1.30	1.10	1.97	0.79	1.01	1.13	0.95

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $921,227K ÷ $641,619K
= 1.44

The current ratio of Meritage Homes Corp. has shown fluctuations over the past eight quarters, ranging from a low of 0.62 in Q3 2022 to a high of 2.16 in Q2 2023. A current ratio above 1 indicates that the company has more current assets than current liabilities to cover its short-term obligations.

The downward trend from Q3 2022 to Q2 2023 could be concerning, as a decreasing current ratio may suggest that the company's ability to meet its short-term obligations is weakening. However, the current ratio increased notably in Q2 2023, which is a positive sign that the company may be improving its liquidity position.

It is important to consider the industry benchmarks and compare Meritage Homes Corp.'s current ratio with its peers to gain a better understanding of its liquidity position relative to the industry. Additionally, further analysis of the components of current assets and current liabilities would provide more insight into the company's liquidity management.