Meritage Corporation (MTH)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 986,571 1,023,878 1,047,256 1,000,736 937,006 1,020,386 1,053,121 1,145,292 1,265,913 1,235,233 1,190,976 1,091,820 971,963 855,760 729,533 614,961 535,743 460,099 417,972 370,876
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
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
Return on total capital 19.19% 20.36% 21.45% 21.20% 20.32% 23.08% 24.79% 28.16% 32.05% 33.55% 34.90% 34.46% 31.93% 30.29% 27.76% 24.83% 22.82% 20.92% 20.05% 18.63%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $986,571K ÷ ($—K + $5,141,570K)
= 19.19%

Meritage Corporation's return on total capital has shown a generally increasing trend over the years, starting at 18.63% in March 2020 and peaking at 34.90% in June 2022. Subsequently, there was a slight decline in the return on total capital to 19.19% in December 2024. Overall, the company has maintained a healthy return on total capital, indicating efficient utilization of both debt and equity to generate profits. It's important for stakeholders to monitor this ratio to assess the company's ability to generate returns on the total capital employed in its operations.