Meritage Corporation (MTH)

Financial leverage 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
Total assets	US$ in thousands	6,353,130	6,181,870	6,065,640	5,871,150	5,772,100	5,571,090	5,307,720	5,058,160	4,807,530	4,565,450	4,321,550	4,038,420	3,864,400	3,687,320	3,541,730	3,914,460	3,398,250	3,635,040	3,466,880	3,395,870
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
Financial leverage ratio		1.38	1.40	1.43	1.44	1.46	1.51	1.56	1.60	1.58	1.62	1.64	1.63	1.65	1.68	1.70	1.97	1.72	1.94	1.93	1.95

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,353,130K ÷ $4,611,900K
= 1.38

The financial leverage ratio of Meritage Homes Corp. has been gradually decreasing over the past eight quarters, starting at 1.60 in Q1 2022 and reaching 1.38 in Q4 2023. This trend indicates that the company has been reducing its reliance on debt to finance its operations and growth. A lower financial leverage ratio generally signifies lower financial risk and greater financial stability for the company. Meritage Homes Corp. seems to be managing its debt levels effectively, which could be seen as a positive sign for investors and stakeholders.