Meritage Corporation (MTH)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.39 | 1.38 | 1.46 | 1.58 | 1.65 |
Meritage Corporation's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity over the past five years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00, suggesting that the company operates with minimal debt obligations compared to its total assets, capital, and equity.
The Financial leverage ratio has shown a decreasing trend from 1.65 in 2020 to 1.39 in 2024, indicating that the company has been effectively managing its financial leverage by reducing its reliance on debt financing relative to its total assets.
Overall, Meritage Corporation's solvency ratios reflect a conservative financial strategy, emphasizing stability and minimizing financial risk by maintaining a strong balance sheet with a low level of debt.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 31,447.80 | 3,060.82 | 246.09 |
Interest coverage is a financial ratio that indicates a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio signifies that a company is more capable of servicing its debt obligations.
For Meritage Corporation, the interest coverage ratio has shown a significant improvement over the years. In December 31, 2020, the interest coverage ratio was 246.09, indicating that the company's earnings were 246 times more than its interest expenses for that period. By December 31, 2021, the ratio soared to 3,060.82, reflecting a substantial increase in the company's ability to cover its interest costs. Furthermore, as of December 31, 2022, the interest coverage ratio reached an impressive 31,447.80, demonstrating a robust financial position and the company's capacity to easily fulfill its interest obligations.
The absence of values for December 31, 2023, and December 31, 2024, suggests either a change in reporting practices or a different financial situation for those years.
Overall, the trend of Meritage Corporation's interest coverage ratio indicates a strong financial standing, with a significant increase in its ability to cover interest expenses over the years.