Meritage Corporation (MTH)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	1,973,990	1,873,570	1,798,100	1,743,070
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,611,900K)
= 0.00

The debt-to-capital ratio of Meritage Homes Corp. has been showing a gradual increase over the past eight quarters, indicating a rising proportion of debt relative to the total capital employed by the company. This trend suggests that the company is becoming more reliant on debt financing rather than equity financing to support its operations and growth initiatives.

The ratio has moved from 0.18 in Q4 2022 to 0.27 in Q1 2022, indicating an upward trajectory. The increase in the debt-to-capital ratio may raise concerns about the company's financial stability and ability to service its debt obligations in the long run.

Investors and creditors often monitor the debt-to-capital ratio as a key indicator of a company's financial health and risk profile. A higher ratio suggests higher financial leverage and, consequently, higher financial risk. It is important for Meritage Homes Corp. to carefully manage its debt levels and ensure that it can comfortably meet its debt obligations while maintaining a healthy capital structure.