Meritage Corporation (MTH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Meritage Homes Corp. indicate the company's ability to meet its long-term financial obligations and manage its debt levels.
1. Debt-to-assets ratio remained relatively stable around 0.16 to 0.20 throughout 2022 and 2023. This suggests that the company finances a modest portion of its assets with debt, indicating a conservative approach to leverage.
2. Debt-to-capital ratio increased gradually from 0.18 in Q4 2022 to 0.22 in Q1 2023. This indicates the company's increasing reliance on debt to fund its operations and investments. However, the ratio remained within a reasonable range, indicating manageable financial risk.
3. Debt-to-equity ratio also showed a consistent upward trend from 0.22 in Q4 2022 to 0.28 in Q1 2023. This indicates that the company's debt levels relative to its equity are increasing, potentially signaling higher financial leverage and risk.
4. Financial leverage ratio increased steadily from 1.38 in Q4 2022 to 1.44 in Q1 2023, reflecting a higher degree of financial leverage. This indicates that the company is relying more on debt to finance its operations, which could increase financial risk.
Overall, while the debt ratios of Meritage Homes Corp. have been increasing, they have generally remained at manageable levels. However, the company should continue to monitor its debt levels closely to ensure its long-term financial sustainability and ability to weather economic downturns.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Meritage Homes Corp. gradually improved over the past quarters, demonstrating the company's ability to meet its interest obligations with its operating income. In Q1 2022, the interest coverage ratio was 4,049.99, indicating that the company's operating income was significantly higher than its interest expenses. This ratio increased to 6,193.03 in Q2 2022 and further improved to 11,133.69 in Q3 2022. By Q4 2022, the interest coverage ratio had surged to 31,381.46, reflecting a very strong ability to cover interest expenses. However, the data for Q1-Q4 2023 is absent, making it difficult to assess the trend for the current year. It is evident that Meritage Homes Corp. has shown a positive trend in managing its interest expenses efficiently, but additional information is required to fully evaluate its performance in 2023.