Meritage Corporation (MTH)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,002,870 | 1,270,390 | 1,289,360 | 973,340 | 535,743 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,141,570 | 4,611,900 | 3,949,610 | 3,044,390 | 2,347,870 |
| Return on total capital | 19.51% | 27.55% | 32.65% | 31.97% | 22.82% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,002,870K ÷ ($—K + $5,141,570K)
= 19.51%
The return on total capital for Meritage Corporation has shown a generally positive trend over the years, starting at 22.82% on December 31, 2020, and increasing to 31.97% on December 31, 2021, further rising to 32.65% by December 31, 2022. However, there was a slight decrease to 27.55% by December 31, 2023, and a more significant decline to 19.51% by December 31, 2024. Despite the fluctuations in the later years, the company has managed to maintain a relatively high return on total capital, indicating efficient utilization of both debt and equity to generate profits. It would be advisable for stakeholders to monitor the trend closely to understand the factors contributing to these fluctuations and assess the company's capital allocation strategies.
Peer comparison
Dec 31, 2024