Meritage Corporation (MTH)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	949,430	1,032,810	1,076,567	1,168,738	1,289,359	1,258,679	1,190,976	1,075,009	955,152	838,949	712,722	614,961	535,743	450,932	408,805	361,709	311,315	293,088	271,116	271,474
Interest expense (ttm)	US$ in thousands	0	0	0	0	41	113	192	269	318	247	223	2,251	2,177	2,196	3,209	4,301	8,370	8,902	7,887	4,734
Interest coverage		—	—	—	—	31,447.78	11,138.75	6,203.00	3,996.32	3,003.62	3,396.55	3,196.06	273.19	246.09	205.34	127.39	84.10	37.19	32.92	34.38	57.35

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $949,430K ÷ $0K
= —

Interest coverage ratio is a financial metric used to evaluate a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio indicates that a company is more capable of covering its interest payments from its operating income.

Based on the provided data for Meritage Homes Corp., the interest coverage ratios for the last eight quarters are as follows:
- Q4 2023: Data not available
- Q3 2023: Data not available
- Q2 2023: Data not available
- Q1 2023: Data not available
- Q4 2022: 31,381.46
- Q3 2022: 11,133.69
- Q2 2022: 6,193.03
- Q1 2022: 4,049.99

The trend indicates a significant increase in the interest coverage ratio over the last few quarters. This improvement signifies that the company's operating income has more than adequately covered its interest expenses, reflecting a stronger financial position and reduced risk of default. It suggests that Meritage Homes Corp. has been generating sufficient earnings to comfortably meet its interest obligations on its outstanding debt. This positive trend may be attributed to improved operational efficiency, increased revenues, or effective cost management strategies.