Meritage Corporation (MTH)

Operating 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
Operating income (ttm)	US$ in thousands	-1,234,173	-1,216,485	-1,143,806	-519,856	-470,237	-395,903	-375,616	-956,045	-956,410	-1,012,749	-1,008,475	-971,393	-950,619	-862,033	-836,290	-814,022	-804,447	-787,462	-777,541	-520,736
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
Operating profit margin		-20.11%	-18.79%	-17.76%	-8.27%	-7.48%	-6.84%	-6.86%	-17.97%	-18.69%	-20.15%	-20.56%	-20.74%	-21.10%	-20.37%	-20.72%	-21.04%	-21.87%	-31.06%	-31.36%	-20.93%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-1,234,173K ÷ $6,137,610K
= -20.11%

The operating profit margin for Meritage Homes Corp. has been showing a declining trend over the past eight quarters. Starting at a high of 21.29% in Q2 2022, it decreased steadily to 14.36% in Q4 2023. This decline indicates that the company's profitability from its core operations has been weakening over time. Factors such as increasing costs, competitive pressures, or changing market conditions could be contributing to this trend. It is essential for the company to closely monitor and address these factors to improve its operating efficiency and enhance profitability in the future.