Meritage Corporation (MTH)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,611,900 | 3,949,610 | 3,044,390 | 2,347,870 | 1,973,990 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $4,611,900K
= 0.00
The debt-to-equity ratio of Meritage Homes Corp. has shown a decreasing trend over the past five years, indicating a positive development in the company's capital structure. A lower debt-to-equity ratio typically signifies lower financial risk and greater financial stability, as it suggests that the company is relying less on debt financing relative to its equity.
The decreasing trend in the debt-to-equity ratio from 2019 to 2023 suggests that Meritage Homes Corp. has been effectively managing its debt levels while potentially increasing its equity base. This improved balance between debt and equity indicates a more sustainable and healthy financial position for the company.
The company's debt-to-equity ratio dropped from 0.52 in 2019 to 0.22 in 2023, reflecting a significant reduction in debt leverage and a stronger equity position relative to its debt obligations. This decline may indicate that the company has been able to pay down its debt, issue more equity, or a combination of both, which can be seen as a positive sign of financial health and risk management.
Overall, the decreasing debt-to-equity ratio of Meritage Homes Corp. over the past five years suggests an improving financial position and indicates a strengthening of the company's balance sheet, which can enhance its ability to weather economic downturns and pursue growth opportunities.
Peer comparison
Dec 31, 2023