Meritage Corporation (MTH)

Operating profit margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Operating income (ttm) US$ in thousands 1,056,399 1,098,452 1,225,686 1,264,482 1,200,752 1,198,876 1,161,883 1,169,196 1,289,817 1,259,137 1,190,166 1,090,552 969,897 850,345 724,198 608,112 529,081 449,493 406,152 358,202
Revenue (ttm) US$ in thousands 6,378,530 6,428,070 6,461,290 6,327,060 6,137,610 6,475,460 6,439,460 6,290,680 6,298,160 5,804,090 5,484,860 5,350,400 5,147,330 5,058,390 4,936,380 4,690,430 4,506,306 4,231,586 4,035,343 3,869,074
Operating profit margin 16.56% 17.09% 18.97% 19.99% 19.56% 18.51% 18.04% 18.59% 20.48% 21.69% 21.70% 20.38% 18.84% 16.81% 14.67% 12.96% 11.74% 10.62% 10.06% 9.26%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,056,399K ÷ $6,378,530K
= 16.56%

The operating profit margin of Meritage Corporation has shown a positive trend over the periods indicated in the data. The margin started at 9.26% in March 2020 and consistently increased to reach its peak at 21.70% in June 2022.

From June 2022 onwards, the operating profit margin began to decline gradually, with fluctuations in the following periods. Notably, there was a significant decrease from June 2023 to September 2024, indicating potential challenges in maintaining profitability during that period.

Overall, the operating profit margin remained relatively healthy, staying above 15% for most of the periods analyzed. This suggests that the company was able to efficiently manage its operating expenses relative to its revenues, although some fluctuations in profitability were observed over time.

It is recommended that further analysis be conducted to understand the factors contributing to the fluctuations in the operating profit margin and to assess the company's strategies for sustaining profitability in the future.