Meritage Corporation (MTH)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	4,611,900	3,949,610	3,044,390	2,347,870	1,973,990
ROE		16.02%	25.12%	24.22%	18.04%	12.65%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $738,748K ÷ $4,611,900K
= 16.02%

Based on the data provided, Meritage Homes Corp.'s return on equity (ROE) has shown fluctuations over the past five years. In 2023, the ROE stands at 16.02%, which represents a decrease compared to the previous year's ROE of 25.12%. Despite this decline, the current ROE remains at a moderate level.

The ROE has generally been on an upward trend from 2019 to 2022, indicating an improvement in the company's ability to generate profit from its shareholder's equity. The peak ROE was observed in 2022 at 25.12%, which is a significant increase from the ROE of 12.65% in 2019.

However, the decrease in ROE in 2023 could indicate potential challenges or changes in the company's profitability or efficiency in utilizing its equity to generate returns for shareholders. It is essential for stakeholders to further investigate the underlying factors driving this decline in ROE to assess the company's financial health and performance accurately.

Overall, while Meritage Homes Corp. has shown positive ROE figures over the years, the recent decrease in 2023 highlights the importance of ongoing monitoring and analysis of financial performance metrics to ensure sustainable and profitable operations in the long term.