Meritage Corporation (MTH)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,002,870 | 1,270,390 | 1,289,360 | 973,340 | 535,743 |
| Interest expense | US$ in thousands | 0 | 0 | 41 | 318 | 2,177 |
| Interest coverage | — | — | 31,447.80 | 3,060.82 | 246.09 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,002,870K ÷ $0K
= —
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. In the case of Meritage Corporation:
1. On December 31, 2020, the interest coverage ratio was 246.09, indicating that the company had significant earnings available to cover its interest expenses.
2. By December 31, 2021, the interest coverage ratio improved significantly to 3,060.82, reflecting a substantial increase in the company's ability to meet its interest payments.
3. As of December 31, 2022, the interest coverage ratio soared to 31,447.80, suggesting a robust financial position and strong earnings relative to interest expenses.
4. There is no data available for the interest coverage ratio for the years 2023 and 2024 in the provided information.
Overall, the trend indicates a progressive improvement in Meritage Corporation's ability to cover its interest expenses, reflecting a healthier financial position over the years analyzed.
Peer comparison
Dec 31, 2024