Meritage Corporation (MTH)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	1,348,990	1,270,390	1,289,360	973,340	535,743
Revenue	US$ in thousands	6,363,870	6,113,010	6,298,150	5,147,330	4,506,300
Operating profit margin		21.20%	20.78%	20.47%	18.91%	11.89%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,348,990K ÷ $6,363,870K
= 21.20%

The operating profit margin of Meritage Corporation has shown a positive trend over the past five years, increasing from 11.89% as of December 31, 2020, to 21.20% as of December 31, 2024. This indicates that the company has been able to effectively manage its operating expenses in relation to its net sales, resulting in an improved profitability level. The steady growth in operating profit margin suggests that Meritage Corporation has been efficient in controlling its costs and maximizing its operating income, which can be a positive indicator of the company's operational efficiency and financial health. This upward trajectory in operating profit margin reflects well on Meritage Corporation's ability to generate earnings from its core business operations.