Meritage Corporation (MTH)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 786,186 | 738,748 | 992,192 | 737,444 | 423,475 |
| Total assets | US$ in thousands | 7,162,650 | 6,353,130 | 5,772,100 | 4,807,530 | 3,864,400 |
| ROA | 10.98% | 11.63% | 17.19% | 15.34% | 10.96% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $786,186K ÷ $7,162,650K
= 10.98%
Based on the provided data, Meritage Corporation's return on assets (ROA) has shown fluctuation over the past five years.
- As of December 31, 2020, the ROA was 10.96%.
- By December 31, 2021, the ROA had increased to 15.34%, indicating improved efficiency in generating earnings from its assets.
- The trend continued to improve by December 31, 2022, with the ROA reaching 17.19%, signaling strong asset utilization.
- However, by December 31, 2023, the ROA declined to 11.63%, suggesting a potential decrease in profitability relative to the assets employed.
- The ROA remained relatively stable at 10.98% as of December 31, 2024.
Overall, the fluctuations in Meritage Corporation's ROA reflect varying levels of asset profitability and efficiency over the past five years. Further analysis would be needed to understand the underlying reasons for these fluctuations and to determine the company's ability to effectively utilize its assets to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024