Meritage Corporation (MTH)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	738,748	992,192	737,444	423,475	249,663
Total assets	US$ in thousands	6,353,130	5,772,100	4,807,530	3,864,400	3,398,250
ROA		11.63%	17.19%	15.34%	10.96%	7.35%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $738,748K ÷ $6,353,130K
= 11.63%

The return on assets (ROA) for Meritage Homes Corp. has shown a positive trend over the past five years, indicating the company's ability to generate profits relative to its total assets.

In 2023, the ROA decreased to 11.63% from 17.19% in 2022, which might suggest a decline in the company's efficiency in generating earnings from its assets. However, the ROA of 11.63% is still relatively strong compared to the years prior to 2022.

The significant increase in ROA from 2019 (7.35%) to 2022 (17.19%) is a positive sign of improved asset utilization and profitability within the company. It indicates that Meritage Homes Corp. has enhanced its efficiency in utilizing its assets to generate higher returns for its shareholders during this period.

Overall, while there was a slight decline in ROA in 2023 compared to the previous year, the company has generally shown an improvement in its ability to generate earnings from its assets over the past five years. This suggests that Meritage Homes Corp. has been effectively managing its assets to drive profitability and create value for its stakeholders.