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.
Peer comparison
Dec 31, 2023