Meritage Corporation (MTH)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,002,870	1,040,177	1,075,979	1,018,142	949,430	1,032,810	1,076,567	1,168,738	1,289,318	1,258,566	1,190,784	1,074,740	954,834	838,702	712,499	612,710	533,566	448,736	405,596	357,408
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
Pretax margin		15.72%	16.18%	16.65%	16.09%	15.47%	15.95%	16.72%	18.58%	20.47%	21.68%	21.71%	20.09%	18.55%	16.58%	14.43%	13.06%	11.84%	10.60%	10.05%	9.24%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,002,870K ÷ $6,378,530K
= 15.72%

The pretax margin of Meritage Corporation has shown a generally upward trend from March 31, 2020, to June 30, 2022, reaching a peak of 21.71%. This indicates that for each dollar of revenue, the company was able to increase its profitability before accounting for taxes.

However, starting from September 30, 2022, the pretax margin began to decrease gradually, with slight fluctuations, until December 31, 2024, where it decreased to 15.72%.

The fluctuation in the pretax margin suggests that the company's efficiency in generating profit has varied over time, possibly influenced by changes in operating expenses, sales volume, or pricing strategies.

It would be advisable for Meritage Corporation to monitor its cost structure and revenue streams closely to sustain or improve its pretax margin in the future.