MTH (Meritage Homes) ROCE % : 19.67% (As of Jun. 2024)

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What is Meritage Homes ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Meritage Homes's annualized ROCE % for the quarter that ended in Jun. 2024 was 19.67%.

Meritage Homes ROCE % Historical Data

The historical data trend for Meritage Homes's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Meritage Homes ROCE % Chart

Meritage Homes Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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10.20

16.56

24.86

27.37

17.47

Meritage Homes Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
ROCE %	Get a 7-Day Free Trial															17.84	20.81	18.44	16.25	19.67

Meritage Homes ROCE % Calculation

Meritage Homes's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	949.43	/	( ( (5772.101 - 613.486)	+	(6353.134 - 641.619) )	/ 2 )
	=	949.43	/	( (5158.615	+	5711.515)	/ 2 )
	=	949.43	/	5435.065
	=	17.47 %

Meritage Homes's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Mar. 2024 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Mar. 2024 )		(Q: Jun. 2024 )
	=	1189.444	/	( ( (6489.305 - 678.694)	+	(6923.98 - 638.307) )	/ 2 )
	=	1189.444	/	( ( 5810.611	+	6285.673 )	/ 2 )
	=	1189.444	/	6048.142
	=	19.67 %

(1) Note: The EBIT data used here is four times the quarterly (Jun. 2024) EBIT data.

Meritage Homes (NYSE:MTH) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Meritage Homes ROCE % Related Terms

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Meritage Homes Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Meritage Homes Corp (NYSE:MTH) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

MEY:Germany MEY:Germany

Address

18655 North Claret Drive, Suite 400, Scottsdale, AZ, USA, 85255

Website

https://www.meritagehomes.com

Meritage Homes Corp is engaged as a designer and builder of single-family attached and detached homes. It has operations in three regions: West, Central, and East, which are comprised of ten states: Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Utah. The company operates with two principal business segments; homebuilding and financial services. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services and the financial services segment offer title and escrow, mortgage, and insurance services. The company generates key revenue from the homebuilding segment.

Executives

R. Odell Michael	director	3111 WEST ALLEGHENY AVENUE, PHILADELPHIA PA 19130
Hilla Sferruzza	officer: Chief Accounting Officer	8800 EAST RAINTREE DRIVE, SUITE 300, SCOTTSDALE AZ 85260
Louis E Caldera	director	C/O BELO CORP, PO BOX 655237, DALLAS TX 75265-5237
Phillippe Lord	officer: EXECUTIVE VICE PRESIDENT	8800 EAST RAINTREE DRIVE, SUITE 300, SCOTTSDALE AZ 85260
Javier Feliciano	officer: EVP Chief Human Resources Off	8800 EAST RAINTREE DRIVE, SUITE 300, SCOTTSDALE AZ 85260
Peter L Ax	director
Alison Sasser	officer: SVP - Chief Accounting Officer	8800 E RAINTREE DRIVE, SUITE 300, SCOTTSDALE AZ 85260
Clinton Szubinski	officer: EVP - Chief Operating Officer	8800 E RAINTREE DRIVE, SCOTTSDALE AZ 85260
Dennis V Arriola	director	162 CANCO ROAD, PORTLAND ME 04103
Gerald W Haddock	director	C/O ENSCO, 5847 SAN FELIPE, HOUSTON TX 77057
Raymond Oppel	director
Steven J Hilton	officer: Chief Executive Officer	6613 N SCOTTSDALE RD, SCOTTSDALE AZ 85250
Malissia Clinton	officer: EVP - Gen. Counsel, Secretary	333 THREE D SYSTEMS CIRCLE, ROCK HILL SC 29730
C Timothy White	officer: EVP - Gen. Counsel, Secretary
Dana Bradford	director	BALLANTYNE OF OMAHA INC, 4350 MCKINLEY STREET, OMAHA NE 68112