Meritage Corporation (MTH)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -1,234,170 | -1,032,940 | -956,410 | -950,619 | -804,447 |
| Revenue | US$ in thousands | 6,113,010 | 6,298,150 | 5,147,330 | 4,506,300 | 3,677,840 |
| Operating profit margin | -20.19% | -16.40% | -18.58% | -21.10% | -21.87% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-1,234,170K ÷ $6,113,010K
= -20.19%
The operating profit margin of Meritage Homes Corp. has shown a general increasing trend over the past five years, with values of 7.67% in 2019, 11.26% in 2020, 18.38% in 2021, 20.06% in 2022, and 14.36% in 2023. This indicates that the company has been improving its efficiency in generating profits from its core operations.
The significant improvement from 2019 to 2022 suggests that the company has been effectively managing its operating expenses relative to its revenue. However, the slight decrease in the operating profit margin in 2023 compared to 2022 may indicate some challenges or changes within the business during that year.
Overall, the increasing trend in the operating profit margin is a positive indicator of the company's profitability and operational efficiency. It shows that Meritage Homes Corp. has been successful in controlling costs and maximizing profits from its primary business activities over the years.
Peer comparison
Dec 31, 2023