Meritage Corporation (MTH)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	786,186	738,748	992,192	737,444	423,475
Revenue	US$ in thousands	6,363,870	6,113,010	6,298,150	5,147,330	4,506,300
Net profit margin		12.35%	12.08%	15.75%	14.33%	9.40%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $786,186K ÷ $6,363,870K
= 12.35%

The net profit margin of Meritage Corporation has shown a fluctuating trend over the past five years. In December 2020, the net profit margin was 9.40%, indicating that the company retained 9.40% of its total revenue as profit after accounting for all expenses.

There was a significant improvement in the net profit margin in December 2021, reaching 14.33%, and further increasing to 15.75% in December 2022. This indicates that the company became more efficient in managing its expenses and generating higher profits relative to its revenue during these years.

However, in December 2023, there was a slight decline in the net profit margin to 12.08%, followed by a slight increase to 12.35% in December 2024. Despite these fluctuations, the company has generally maintained a healthy net profit margin above 10% over the period under review.

The overall trend suggests that Meritage Corporation has been effectively controlling its costs and operating more efficiently to generate profits relative to its revenue. It is important for the company to continue monitoring its expenses and revenue streams to sustain and potentially improve its net profit margin in the future.