Meritage Corporation (MTH)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.39 | 1.41 | 1.42 | 1.37 | 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 |
Meritage Corporation's solvency ratios indicate a strong financial position with consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios across the years 2020 to 2024. The company has maintained a debt-free capital structure, reflecting a prudent approach to managing its financial obligations. The financial leverage ratio has been gradually decreasing over the period, suggesting a decreasing reliance on debt financing and an improving ability to cover interest payments.
Overall, Meritage Corporation's solvency ratios demonstrate a stable and healthy financial position, highlighting the company's ability to meet its long-term financial obligations without significant leverage.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | — | 425.37 | 121.20 | 110.03 | 118.68 | 140.90 | 357.90 | 424.52 | 415.62 | 695.26 | 4,058.81 | 3,056.49 | 3,464.62 | 3,271.45 | 273.19 | 246.09 | 209.52 | 130.25 | 86.23 |
Interest coverage is a financial ratio that indicates a company's ability to cover its interest obligations with its earnings. A higher interest coverage ratio implies that the company is more capable of meeting its interest payments.
Analyzing the interest coverage of Meritage Corporation over the reported periods shows that the company's interest coverage ratio varied significantly. In March 2020, the interest coverage was 86.23, indicating that the company may have had some difficulty covering its interest expenses with its earnings at that time. However, over the following quarters, the interest coverage improved steadily, reaching a peak of 4,058.81 in March 2022, signifying a strong ability to meet its interest payments.
The interest coverage ratio then experienced a sharp decline in June 2022 to 695.26 and continued to fluctuate over the subsequent quarters. By December 2023, the interest coverage ratio had dropped to 110.03, suggesting a potential strain on the company's ability to cover its interest obligations.
In the last reported period, June 30, 2024, the interest coverage ratio increased to 425.37, indicating a slight improvement in the company's ability to cover its interest expenses. However, it is important to note that the data for the last two periods, September 30, 2024, and December 31, 2024, is not available.
Overall, the fluctuating trend in Meritage Corporation's interest coverage ratio reflects the changing financial performance of the company and its capacity to meet its interest payments over the analyzed period.