Meritage Corporation (MTH)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 6,353,130 | 5,772,100 | 4,807,530 | 3,864,400 | 3,398,250 |
| Operating ROA | -19.43% | -17.90% | -19.89% | -24.60% | -23.67% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-1,234,170K ÷ $6,353,130K
= -19.43%
The operating return on assets (operating ROA) for Meritage Homes Corp. has shown a fluctuating trend over the past five years. In 2023, the operating ROA stands at 13.82%, reflecting a decrease from the previous year's 21.78%. Despite the decline, the current operating ROA remains relatively strong compared to the levels observed in 2020 (13.07%), 2019 (8.24%), and 2021 (19.58%).
The decreasing trend in operating ROA from 2022 to 2023 may indicate potential challenges or changes in the company's operational efficiency and profitability. It would be advisable for Meritage Homes Corp. to further analyze the factors contributing to this decline and take proactive measures to improve its operating performance and asset utilization in order to enhance overall financial health and shareholder value.
Peer comparison
Dec 31, 2023