Meritage Corporation (MTH)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $5,141,570K)
= 0.00
Based on the data provided for Meritage Corporation's debt-to-capital ratio from December 31, 2020, to December 31, 2024, the ratio remains consistent at 0.00 across all the years. This indicates that the company has not utilized any debt to finance its operations or growth during this period. A debt-to-capital ratio of 0.00 suggests that the company's capital structure is entirely equity-financed, which can be viewed positively as it indicates a lower financial risk and less dependency on external borrowing. However, it is essential to assess the overall financial strategy and risk management approach of the company to fully understand the implications of such a low debt-to-capital ratio.
Peer comparison
Dec 31, 2024