Meritage Corporation (MTH)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 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 | 3,398,250 | 3,635,040 | 3,466,880 | 3,395,870 |
| Operating ROA | -19.43% | -19.68% | -18.86% | -8.85% | -8.15% | -7.11% | -7.08% | -18.90% | -19.89% | -22.18% | -23.34% | -24.05% | -24.60% | -23.38% | -23.61% | -20.80% | -23.67% | -21.66% | -22.43% | -15.33% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-1,234,173K ÷ $6,353,130K
= -19.43%
Operating return on assets (ROA) measures how efficiently a company is generating operating income from its assets. In the case of Meritage Homes Corp., the operating ROA has shown a declining trend over the past eight quarters, falling from 21.78% in Q4 2022 to 13.82% in Q4 2023. This downward trend suggests a potential decrease in the company's ability to generate operating income from its assets.
It is important for stakeholders to closely monitor this metric as it indicates the company's profitability relative to its asset base. A declining operating ROA could signal inefficiencies in asset utilization, operational performance, or changes in the industry or market conditions affecting profitability. Further analysis of Meritage Homes Corp.'s operational efficiency and asset management practices is recommended to identify underlying factors contributing to the decline in operating ROA and to implement corrective measures if needed.
Peer comparison
Dec 31, 2023