Meritage Homes Invested Capital vs Free Cash Flow Analysis

MTH -- USA Stock  

USD 68.12  2.53  3.58%

Meritage Homes financial indicator trend analysis is infinitely more than just investigating Meritage Homes recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Meritage Homes is a good investment. Please check the relationship between Meritage Homes Invested Capital and its Free Cash Flow accounts. Please see also Stocks Correlation.

Invested Capital vs Free Cash Flow

Accounts Relationship

Invested Capital vs Free Cash Flow

Significance: Almost Identical Trend

Invested Capital diversification synergy
Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Meritage Homes Invested Capital account and Free Cash Flow

Correlation Coefficient

0.96
Relationship DirectionPositive 
Relationship StrengthVery Strong

Invested Capital

Invested capital represents the total cash investment that shareholders and debt holders have contributed to Meritage Homes Corporation. There are two different methods for calculating Meritage Homes invested capital: operating approach and financing approach. Understanding ##company1# invested capital allows investors to calculate measures of performance such as return on invested capital or return on capital employed. Invested capital is an input into the calculation of Return on Invested Capital; and is calculated as: [Debt] plus [Assets] minus [Intangibles] minus [CashnEq] minus [LiabilitiesC]. Please note this calculation method is subject to change.

Free Cash Flow

Free Cash Flow is a measure of financial performance calculated as Net Cash Flow from Operations minus [CapEx].
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