Meritage Corporation (MTH)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 5,141,570 | 4,611,900 | 3,949,610 | 3,044,390 | 2,347,870 |
| ROE | 15.29% | 16.02% | 25.12% | 24.22% | 18.04% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $786,186K ÷ $5,141,570K
= 15.29%
The return on equity (ROE) for Meritage Corporation has shown a fluctuating trend over the past five years. Starting at 18.04% as of December 31, 2020, the ROE increased to 24.22% by December 31, 2021, indicating improved efficiency in generating profits from shareholders' equity. This upward trajectory continued into December 31, 2022, with an ROE of 25.12%, signaling strong financial performance and effective utilization of equity.
However, there was a decline in ROE by December 31, 2023, dropping to 16.02%. This decrease suggests potential challenges or inefficiencies in generating profits relative to the level of equity investment. Subsequently, by December 31, 2024, the ROE further decreased to 15.29%, indicating a continued decline in profitability compared to shareholder equity.
Overall, the fluctuations in Meritage Corporation's ROE highlight varying levels of profitability and efficiency in utilizing equity over the years. It may be essential for stakeholders to assess the factors contributing to these changes to ensure sustainable and optimal returns on equity in the future.
Peer comparison
Dec 31, 2024