Meritage Corporation (MTH)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	7,162,650	7,103,450	6,923,980	6,489,300	6,353,130	6,181,870	6,065,640	5,871,150	5,772,100	5,571,090	5,307,720	5,058,160	4,807,530	4,565,450	4,321,550	4,038,420	3,864,400	3,687,320	3,541,730	3,914,460
Operating ROA		14.75%	15.46%	17.70%	19.49%	18.90%	19.39%	19.16%	19.91%	22.35%	22.60%	22.42%	21.56%	20.17%	18.63%	16.76%	15.06%	13.69%	12.19%	11.47%	9.15%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,056,399K ÷ $7,162,650K
= 14.75%

The operating return on assets (operating ROA) of Meritage Corporation has shown a generally increasing trend from March 2020 to December 2022, reaching a peak of 22.60% on September 30, 2022. This indicates that the company has been generating more operating income relative to its total assets during this period.

However, from March 2023 to December 2024, the operating ROA experienced a slight decline, dropping to 14.75% by the end of December 2024. This decrease suggests that the company's operating performance in relation to its asset base has weakened over these quarters.

Overall, the fluctuation in Meritage Corporation's operating ROA over the covered period indicates changes in the efficiency of asset utilization and operating profitability. It would be essential for the company to closely monitor and manage its operational performance to maintain or improve its operating ROA in the future.