Meritage Corporation (MTH)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | 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 |
| 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 | 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 |
| Quick ratio | 1.44 | 1.39 | 1.76 | 1.47 | 1.30 | 0.42 | 0.39 | 0.73 | 1.05 | 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
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 improvement over the past few quarters, indicating a strengthening liquidity position. The quick ratio has consistently been above 1, reaching as high as 2.16 in Q2 2023, which suggests the company has an ample amount of liquid assets to cover its short-term liabilities. This is a positive sign as it indicates the company's ability to quickly meet its financial obligations without relying heavily on inventory.
The notable increase in the quick ratio from Q2 2022 to Q2 2023 shows that Meritage Homes Corp. has become more efficient in managing its short-term liquidity. However, it's important to note the dip in Q4 2022 when the quick ratio fell to 0.69, potentially signaling a temporary liquidity strain.
Overall, the trend of the quick ratio for Meritage Homes Corp. paints a picture of improved liquidity management and a stronger financial position in recent quarters. However, it's important to continue monitoring this ratio to ensure the company maintains a healthy level of liquidity to cover its short-term obligations.
Peer comparison
Dec 31, 2023