Meritage Corporation (MTH)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	4,611,900	4,421,040	4,248,300	4,067,210	3,949,610	3,681,810	3,412,470	3,168,320	3,044,390	2,825,270	2,628,140	2,476,690	2,347,870	2,199,850	2,084,600	1,990,770	1,973,990	1,873,570	1,798,100	1,743,070
ROE		16.02%	18.15%	19.84%	22.28%	25.12%	26.27%	26.54%	25.97%	24.22%	23.10%	21.34%	19.55%	18.04%	17.03%	16.08%	14.84%	12.65%	11.82%	11.45%	11.98%

December 31, 2023 calculation

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

Meritage Homes Corp.'s return on equity (ROE) has shown a declining trend over the past eight quarters, starting at 25.97% in Q1 2022 and decreasing to 16.02% in Q4 2023. This downward trajectory suggests a potential deterioration in the company's efficiency in generating profits from shareholders' equity during this period. A lower ROE could indicate decreased profitability, increased debt levels, or inefficient use of assets. It is vital for investors and stakeholders to closely monitor the company's financial performance and assess the factors contributing to the declining ROE to make informed decisions regarding their investment in Meritage Homes Corp.