Meritage Corporation (MTH)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	1,594,509	1,647,464	1,693,448	1,618,346	1,519,022	1,602,706	1,623,075	1,697,943	1,802,895	1,735,254	1,656,026	1,556,142	1,435,328	1,320,202	1,191,930	1,065,383	976,002	876,594	819,875	760,245
Revenue (ttm)	US$ in thousands	6,378,530	6,428,070	6,461,290	6,327,060	6,137,610	6,475,460	6,439,460	6,290,680	6,298,160	5,804,090	5,484,860	5,350,400	5,147,330	5,058,390	4,936,380	4,690,430	4,506,306	4,231,586	4,035,343	3,869,074
Gross profit margin		25.00%	25.63%	26.21%	25.58%	24.75%	24.75%	25.21%	26.99%	28.63%	29.90%	30.19%	29.08%	27.88%	26.10%	24.15%	22.71%	21.66%	20.72%	20.32%	19.65%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,594,509K ÷ $6,378,530K
= 25.00%

The gross profit margin of Meritage Corporation has shown a generally positive trend over the years, starting at 19.65% in March 2020 and gradually increasing to 30.19% in June 2022, indicating efficient cost management and pricing strategies. However, there was a slight decline to 24.75% by December 2023, before stabilizing around 25% in the following periods.

The upward trajectory up to June 2022 suggests that the company was able to command higher prices for its products or services relative to the cost of production. The subsequent fluctuations may indicate changes in input costs, competitive pressures, or shifts in market demand impacting the company's profitability.

Overall, maintaining a gross profit margin above 20% demonstrates Meritage Corporation's ability to generate healthy profits from its core operations, but the slight decline in the later periods warrants further investigation into potential factors influencing the company's profitability.