Meritage Homes (FRA:MEY) ROCE % : 16.27% (As of Mar. 2024)

View and export this data going back to 2013. Start your Free Trial

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 Mar. 2024 was 16.27%.

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.

* Premium members only.

Meritage Homes ROCE % Chart

Meritage Homes Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

Get a 7-Day Free Trial

10.32

15.85

25.67

28.16

17.23

Meritage Homes Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															12.60	17.73	20.97	18.25	16.27

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 )
	=	870.627	/	( ( (5448.863 - 579.131)	+	(5825.824 - 588.365) )	/ 2 )
	=	870.627	/	( (4869.732	+	5237.459)	/ 2 )
	=	870.627	/	5053.5955
	=	17.23 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	861.176	/	( ( (5825.824 - 588.365)	+	(5970.161 - 624.398) )	/ 2 )
	=	861.176	/	( ( 5237.459	+	5345.763 )	/ 2 )
	=	861.176	/	5291.611
	=	16.27 %

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

Meritage Homes (FRA:MEY) 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

Thank you for viewing the detailed overview of Meritage Homes's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Meritage Homes (FRA:MEY) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

MTH:USA

Address

8800 East Raintree Drive, Suite 300, Scottsdale, AZ, USA, 85260

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.

Meritage Homes (FRA:MEY) Headlines

No Headlines