Meritage Corporation (MTH)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 25.00% | 25.63% | 26.21% | 25.58% | 24.75% | 24.75% | 25.21% | 26.99% | 28.63% | 29.90% | 30.19% | 29.08% | 27.88% | 26.10% | 24.15% | 22.71% | 21.66% | 20.72% | 20.32% | 19.65% |
| Operating profit margin | 16.56% | 17.09% | 18.97% | 19.99% | 19.56% | 18.51% | 18.04% | 18.59% | 20.48% | 21.69% | 21.70% | 20.38% | 18.84% | 16.81% | 14.67% | 12.96% | 11.74% | 10.62% | 10.06% | 9.26% |
| 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% |
| Net profit margin | 12.33% | 12.64% | 12.97% | 12.54% | 12.04% | 12.39% | 13.09% | 14.41% | 15.75% | 16.67% | 16.51% | 15.38% | 14.33% | 12.90% | 11.36% | 10.32% | 9.40% | 8.85% | 8.31% | 7.63% |
Based on the provided data, we can analyze the profitability ratios of Meritage Corporation over the period from March 31, 2020, to December 31, 2024:
1. Gross Profit Margin:
The gross profit margin shows the percentage of revenue that exceeds the cost of goods sold. Meritage Corporation's gross profit margin has generally shown an increasing trend over the period, starting at 19.65% on March 31, 2020, and reaching a peak of 30.19% on June 30, 2022. However, there was a slight decrease to 25.00% by December 31, 2024.
2. Operating Profit Margin:
The operating profit margin reflects the percentage of revenue that remains after deducting operating expenses. Meritage Corporation's operating profit margin has shown fluctuations over the period, with peaks around December 31, 2021, and March 31, 2022. The margin ranged from a low of 16.56% on December 31, 2024, to a high of 21.70% on June 30, 2022.
3. Pretax Margin:
The pretax margin indicates the percentage of revenue remaining after deducting all expenses except for income taxes. Meritage Corporation's pretax margin has also fluctuated over the period, with a range from 15.47% on December 31, 2023, to a peak of 21.71% on June 30, 2022. The trend shows variability but generally maintained above 15%.
4. Net Profit Margin:
The net profit margin is a key measure of profitability, representing the percentage of revenue that translates into net income. Meritage Corporation's net profit margin ranged from 12.04% on December 31, 2023, to 16.67% on June 30, 2022. The margins reflect the company's ability to manage costs and generate profits, with a general upward trend from 7.63% on March 31, 2020, to 12.33% on December 31, 2024.
Overall, Meritage Corporation's profitability ratios have shown variability over the years, indicating fluctuations in its operational efficiency and cost management. Investors and stakeholders may want to further analyze the factors contributing to these fluctuations to understand the company's profitability trends better.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 10.98% | 11.44% | 12.11% | 12.23% | 11.63% | 12.98% | 13.90% | 15.44% | 17.19% | 17.36% | 17.06% | 16.27% | 15.34% | 14.29% | 12.98% | 11.99% | 10.96% | 10.16% | 9.47% | 7.55% |
| Return on total capital | 19.19% | 20.36% | 21.45% | 21.20% | 20.32% | 23.08% | 24.79% | 28.16% | 32.05% | 33.55% | 34.90% | 34.46% | 31.93% | 30.29% | 27.76% | 24.83% | 22.82% | 20.92% | 20.05% | 18.63% |
| Return on equity (ROE) | 15.29% | 16.15% | 17.17% | 16.81% | 16.02% | 18.15% | 19.84% | 22.28% | 25.12% | 26.27% | 26.54% | 25.97% | 24.22% | 23.10% | 21.34% | 19.55% | 18.04% | 17.03% | 16.08% | 14.84% |
The profitability ratios of Meritage Corporation show a positive trend over the past few years.
1. Operating return on assets (Operating ROA) has steadily increased from 9.15% as of March 31, 2020, to 22.60% as of September 30, 2022, and slightly decreased to 18.90% as of December 31, 2023. This ratio measures the efficiency of using assets to generate operating income.
2. Return on assets (ROA) has also shown a positive trend, rising from 7.55% as of March 31, 2020, to 12.23% as of March 31, 2024. This ratio indicates the company's ability to generate profit from its total assets.
3. Return on total capital has exhibited a similar pattern, increasing from 18.63% as of March 31, 2020, to 21.45% as of June 30, 2024, before slightly declining. This ratio reflects the efficiency of generating returns from all invested capital.
4. Return on equity (ROE) has generally increased over the years, climbing from 14.84% as of March 31, 2020, to 17.17% as of June 30, 2024. ROE measures the profitability of the shareholders' equity investment.
Overall, the increasing trend in these profitability ratios demonstrates Meritage Corporation's improving profitability and efficiency in utilizing its assets and capital to generate returns for its shareholders.