Meritage Corporation (MTH)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 651,555 | 831,559 | 992,921 | 905,298 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 11,753 | 11,356 | 11,223 | 5,631 | 5,764 | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 3.07 | 1.25 | 1.36 | 1.18 | 1.44 | 1.39 | 1.76 | 1.47 | 1.30 | 0.42 | 0.42 | 0.73 | 1.05 | 0.97 | 1.29 | 1.32 | 1.50 | 1.30 | 1.10 | 1.97 |
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, which measures the company's ability to meet its short-term obligations with its most liquid assets, has fluctuated over the past few years.
The ratio started at a healthy level of 1.97 as of March 31, 2020, indicating a strong ability to cover its current liabilities with its quick assets. However, by September 2020, the ratio declined to 1.10, raising concerns about the company's short-term liquidity position.
Subsequently, the quick ratio improved, reaching 1.50 by December 31, 2020, and remained relatively stable around 1.30 to 1.40 until March 31, 2023. This stability may suggest effective management of current assets and liabilities during this period.
However, the quick ratio experienced a decline to 0.42 in June 2022 and remained at this low level until September 2022, signaling potential liquidity challenges during this period.
The ratio increased to 1.30 by December 31, 2022, and continued to rise steadily, reaching a high of 3.07 by December 31, 2024. Such a significant increase in the ratio may indicate a temporary distortion in the data or an improvement in the company's liquidity position due to a substantial increase in quick assets relative to current liabilities.
Overall, the fluctuations in Meritage Corporation's quick ratio over the analyzed periods suggest varying levels of liquidity risk and the need for ongoing monitoring of the company's ability to meet its short-term obligations with its liquid assets.
Peer comparison
Dec 31, 2024