Meritage Corporation (MTH)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,162,650 | 6,353,130 | 5,772,100 | 4,807,530 | 3,864,400 |
| Total stockholders’ equity | US$ in thousands | 5,141,570 | 4,611,900 | 3,949,610 | 3,044,390 | 2,347,870 |
| Financial leverage ratio | 1.39 | 1.38 | 1.46 | 1.58 | 1.65 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,162,650K ÷ $5,141,570K
= 1.39
The financial leverage ratio of Meritage Corporation has been gradually decreasing over the past five years. As of December 31, 2020, the ratio stood at 1.65, indicating that the company had $1.65 in debt for every dollar of equity. By December 31, 2024, the financial leverage ratio had decreased to 1.39, suggesting that the company has been reducing its reliance on debt relative to equity.
Overall, the decreasing trend in the financial leverage ratio signals that Meritage Corporation has been improving its financial stability and reducing its financial risk over the years. This may be an indication of effective debt management practices and a stronger capital structure, which can enhance the company's financial health and long-term sustainability.
Peer comparison
Dec 31, 2024