Martin Marietta Materials Inc (MLM)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		5.41	6.03	6.10	5.46	5.71
DOH	days	67.53	60.54	59.89	66.90	63.94

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.41
= 67.53

The days of inventory on hand (DOH) for Martin Marietta Materials, Inc. have shown some fluctuations over the past five years. In 2023, the DOH was 75.89 days, representing an increase from the previous year's 67.32 days but remaining relatively high compared to the five-year trend.

The DOH was relatively consistent in 2021 and 2022, with values of 67.57 days and 67.32 days, respectively. This stability indicates that the company managed to keep its inventory turnover relatively steady during those years.

In 2020, the DOH increased to 74.43 days, reflecting a slight deterioration in inventory management efficiency compared to the previous year. However, in 2019, the DOH was at 70.82 days, showing a slightly lower level of inventory on hand compared to the most recent year.

Overall, the trend in DOH for Martin Marietta Materials, Inc. suggests some variability in inventory management efficiency over the past five years, with the most recent year (2023) showing a notable increase in the number of days it takes to sell the inventory on hand. This may warrant further investigation into the company's inventory management practices to optimize working capital and operational efficiency.