Meritage Corporation (MTH)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	-617,540	-608,696	-571,903	21,424	540,231	577,362	587,466	487,046	365,806	340,072	342,221	-111,437	-473,998	-434,932	-422,567	-411,979	-406,826	-395,482	-390,014	-133,085
Revenue (ttm)	US$ in thousands	6,137,610	6,475,460	6,439,460	6,284,020	6,285,610	5,791,540	5,472,310	5,319,250	5,116,050	5,027,110	4,905,100	4,684,410	4,506,306	4,231,586	4,035,343	3,869,074	3,677,839	2,534,947	2,479,321	2,488,325
Gross profit margin		-10.06%	-9.40%	-8.88%	0.34%	8.59%	9.97%	10.74%	9.16%	7.15%	6.76%	6.98%	-2.38%	-10.52%	-10.28%	-10.47%	-10.65%	-11.06%	-15.60%	-15.73%	-5.35%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $-617,540K ÷ $6,137,610K
= -10.06%

The gross profit margin of Meritage Homes Corp. has shown a declining trend over the past eight quarters, starting at 28.90% in Q1 2022 and decreasing to 24.65% in Q4 2023. This trend indicates that the company's ability to generate profits from its core operations has been weakening over time.

Factors contributing to this decline could include increased costs of goods sold, pricing pressures in the housing market, or inefficiencies in production and operational processes.

It is important for Meritage Homes Corp. to closely monitor and analyze the drivers of this downward trend in gross profit margin to identify areas for improvement and implement strategies to enhance profitability in the future. Conducting a detailed cost analysis, optimizing pricing strategies, and streamlining operations could be potential actions to consider in addressing this issue.