Meritage Corporation (MTH)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | -10.06% | -9.40% | -8.88% | 0.34% | 8.59% | 9.97% | 10.74% | 9.16% | 7.15% | 6.76% | 6.98% | -2.38% | -10.52% | -10.28% | -10.47% | -10.65% | -11.06% | -15.60% | -15.73% | -5.35% |
| Operating profit margin | -20.11% | -18.79% | -17.76% | -8.27% | -7.48% | -6.84% | -6.86% | -17.97% | -18.69% | -20.15% | -20.56% | -20.74% | -21.10% | -20.37% | -20.72% | -21.04% | -21.87% | -31.06% | -31.36% | -20.93% |
| 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% |
| Net profit margin | 12.04% | 12.39% | 13.09% | 14.42% | 15.79% | 16.70% | 16.55% | 15.47% | 14.41% | 12.98% | 11.43% | 10.34% | 9.40% | 8.85% | 8.31% | 7.63% | 6.79% | 8.74% | 8.30% | 8.39% |
The profitability ratios of Meritage Homes Corp. have shown a downward trend in the most recent quarters. The gross profit margin decreased from 28.47% in Q4 2022 to 24.65% in Q4 2023, indicating a decline in the company's ability to generate profit from its core business activities.
Similarly, the operating profit margin, which measures the company's efficiency in managing its operating expenses, has also decreased from 20.06% in Q4 2022 to 14.36% in Q4 2023. This suggests an increase in operating expenses relative to revenue.
The pretax margin, reflecting the company's profitability before taxes, declined from 20.57% in Q4 2022 to 15.53% in Q4 2023. This indicates a decrease in the company's ability to generate profit before considering tax implications.
Overall, the net profit margin, which shows the company's bottom-line profitability after all expenses have been deducted, has also decreased from 15.83% in Q4 2022 to 12.08% in Q4 2023. This downward trend in profitability ratios suggests a potential challenge for Meritage Homes Corp. in maintaining or improving its overall profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 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% | 7.35% | 6.09% | 5.94% | 6.15% |
| Return on total capital | 20.59% | 23.36% | 25.34% | 28.74% | 32.65% | 34.19% | 34.90% | 33.93% | 31.37% | 29.69% | 27.12% | 24.83% | 22.82% | 20.50% | 19.61% | 18.17% | 15.77% | 15.64% | 15.08% | 15.57% |
| Return on equity (ROE) | 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% | 12.65% | 11.82% | 11.45% | 11.98% |
Meritage Homes Corp. has shown consistent profitability over the past eight quarters based on the profitability ratios analyzed.
- Operating return on assets (Operating ROA) has ranged from 13.82% to 22.09% over the period, indicating that the company generates profits efficiently from its assets used in operations.
- Return on assets (ROA) has ranged from 11.63% to 17.36%, showing the company's ability to generate earnings relative to its total assets, with a peak of 17.36% in Q3 2022.
- Return on total capital has varied from 16.06% to 26.01%, demonstrating the company's ability to generate profits from its total invested capital, implying effective capital utilization.
- Return on equity (ROE) has fluctuated between 16.02% and 26.54%, reflecting the return generated on shareholders' equity, with the highest return achieved in Q3 2022.
Overall, Meritage Homes Corp.'s profitability ratios showcase a solid performance, with consistent returns on its assets, capital, and equity, indicating robust financial health and efficient use of resources to generate earnings.