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.
Peer comparison
Dec 31, 2023