Meritage Corporation (MTH)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	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	302,945	284,186	263,229	266,740
Revenue (ttm)	US$ in thousands	6,137,610	6,475,460	6,439,460	6,284,020	6,285,610	5,791,540	5,472,310	5,319,250	5,116,050	5,027,110	4,905,100	4,684,410	4,506,306	4,231,586	4,035,343	3,869,074	3,677,839	2,534,947	2,479,321	2,488,325
Pretax margin		15.47%	15.95%	16.72%	18.60%	20.51%	21.73%	21.76%	20.20%	18.66%	16.68%	14.53%	13.08%	11.84%	10.60%	10.05%	9.24%	8.24%	11.21%	10.62%	10.72%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $949,430K ÷ $6,137,610K
= 15.47%

The pretax margin of Meritage Homes Corp. has exhibited a declining trend over the past four quarters. The company's pretax margin has decreased from 20.57% in Q4 2022 to 15.53% in Q4 2023. This indicates a decrease in the company's ability to generate profits before accounting for taxes relative to its total revenue over this period.

Despite the sequential decrease, it is worth noting that Meritage Homes Corp. has maintained a relatively healthy pretax margin above 15% in each of the quarters analyzed. This suggests that the company has been successful in managing its operating expenses and generating profits.

Further analysis of the factors impacting the pretax margin, such as changes in revenue, cost of goods sold, and operating expenses, would be necessary to gain a deeper understanding of the company's financial performance and identify potential areas for improvement.