Meritage Corporation (MTH)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 786,186 812,388 838,182 793,463 738,748 802,262 842,991 906,239 992,192 967,287 905,550 822,855 737,444 652,511 560,877 484,166 423,475 374,562 335,253 295,403
Total stockholders’ equity US$ in thousands 5,141,570 5,029,790 4,882,530 4,720,570 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
ROE 15.29% 16.15% 17.17% 16.81% 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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $786,186K ÷ $5,141,570K
= 15.29%

The return on equity (ROE) for Meritage Corporation has exhibited a generally increasing trend from March 31, 2020, to June 30, 2022, reaching a peak of 26.54%. This indicates that the company was generating higher profits from shareholders' equity during this period. However, from September 30, 2022, onwards, the ROE started to decline gradually, possibly signaling a decrease in profitability relative to shareholders' equity. The latest ROE as of December 31, 2024, stands at 15.29%, reflecting a notable drop from the peak. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's ability to generate returns on the investments made by shareholders.