Meritage Corporation (MTH)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	738,748	802,262	842,991	906,239	992,192	967,287	905,550	822,855	737,444	652,511	560,877	484,166	423,475	374,562	335,253	295,403	249,663	221,534	205,860	208,870
Total assets	US$ in thousands	6,353,130	6,181,870	6,065,640	5,871,150	5,772,100	5,571,090	5,307,720	5,058,160	4,807,530	4,565,450	4,321,550	4,038,420	3,864,400	3,687,320	3,541,730	3,914,460	3,398,250	3,635,040	3,466,880	3,395,870
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%

December 31, 2023 calculation

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

To analyze Meritage Homes Corp.'s return on assets (ROA) based on the provided data, we can observe a general declining trend from Q1 2022 to Q4 2023. The ROA decreased from 16.27% in Q1 2022 to 11.63% in Q4 2023.

Throughout the quarters, there have been fluctuations in the ROA, with some periods showing higher returns than others. For instance, Q2 and Q3 2023 had relatively higher ROA figures of 13.90% and 12.98%, respectively. However, the most recent quarter, Q4 2023, recorded the lowest ROA of 11.63%.

The decreasing trend in ROA could indicate potential efficiency or profitability challenges that the company may be facing in managing its assets to generate earnings. It is essential for investors and stakeholders to closely monitor these trends and assess the company's strategies to improve asset utilization and overall performance in the future.