Meritage Corporation (MTH)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 651,555 | 921,227 | 861,561 | 618,335 | 745,621 |
| Short-term investments | US$ in thousands | — | — | 11,753 | 5,764 | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 212,477 | 641,619 | 671,843 | 595,896 | 496,445 |
| Quick ratio | 3.07 | 1.44 | 1.30 | 1.05 | 1.50 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($651,555K
+ $—K
+ $—K)
÷ $212,477K
= 3.07
The quick ratio of Meritage Corporation has shown fluctuations over the past five years.
- As of December 31, 2020, the quick ratio stood at 1.50, indicating that the company had $1.50 in liquid assets available to cover each $1 of current liabilities.
- By December 31, 2021, the quick ratio decreased to 1.05, raising concerns about the company's ability to meet its short-term obligations with liquid assets.
- The quick ratio improved to 1.30 by December 31, 2022, suggesting a better liquidity position compared to the previous year.
- Continuing the trend, the quick ratio further increased to 1.44 as of December 31, 2023, showing a strengthened ability to cover short-term liabilities with liquid assets.
- The most significant improvement occurred by December 31, 2024, with a quick ratio of 3.07, indicating a substantial increase in liquidity and the company's ability to easily meet its short-term obligations.
Overall, the fluctuations in Meritage Corporation's quick ratio over the years suggest varying levels of liquidity and readiness to cover short-term liabilities. It is essential for the company to monitor and manage its liquidity position effectively to ensure financial stability.
Peer comparison
Dec 31, 2024