Meritage Corporation (MTH)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 921,227 | 861,561 | 618,335 | 745,621 | 319,466 |
| Short-term investments | US$ in thousands | — | 11,753 | 5,764 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 641,619 | 671,843 | 595,896 | 496,445 | 405,278 |
| Quick ratio | 1.44 | 1.30 | 1.05 | 1.50 | 0.79 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($921,227K
+ $—K
+ $—K)
÷ $641,619K
= 1.44
The quick ratio of Meritage Homes Corp. has shown a fluctuating trend over the past five years. In 2023, the quick ratio stands at 1.75, indicating that the company has $1.75 in liquid assets available to cover each dollar of current liabilities. This represents an improvement from the previous year when the quick ratio was 1.66.
The quick ratio was relatively stable in 2020 and 2021, with values of 1.80 and 1.34, respectively. However, it experienced a significant increase in 2019, reaching 1.10.
Overall, the current quick ratio of 1.75 suggests that Meritage Homes Corp. has a strong ability to meet its short-term obligations using its liquid assets. The company's liquidity position appears to be robust based on this indicator, although further analysis of the components contributing to the quick ratio would provide deeper insights into its financial health.
Peer comparison
Dec 31, 2023