Meritage Corporation (MTH)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 7,162,650 | 6,353,130 | 5,772,100 | 4,807,530 | 3,864,400 |
| Operating ROA | 18.83% | 20.00% | 22.34% | 20.25% | 13.86% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,348,990K ÷ $7,162,650K
= 18.83%
The operating return on assets (operating ROA) of Meritage Corporation has shown a positive trend over the years as indicated by the increasing values from 13.86% on December 31, 2020, to 18.83% on December 31, 2024. This implies that the company has been able to generate a higher operating income relative to its total assets, reflecting improved operational efficiency and profitability. The peak operating ROA of 22.34% on December 31, 2022, suggests a strong performance in utilizing its assets to generate operating profits. However, the slight decrease to 20.00% on December 31, 2023, followed by a further decline to 18.83% on December 31, 2024, may indicate possible challenges in maintaining the same level of efficiency and profitability in the most recent years. Overall, Meritage Corporation's operating ROA trend indicates a successful utilization of assets to drive operating earnings but may require careful monitoring to sustain and potentially improve its operational performance in the future.
Peer comparison
Dec 31, 2024