Martin Marietta Materials Inc (MLM)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.18 | 4.26 | 4.23 | 4.35 | 4.81 | 4.79 | 4.98 | 4.97 | 5.42 | 5.79 | 5.46 | 5.54 | 5.40 | 5.25 | 4.90 | 5.03 | 4.90 | 4.85 | 4.98 | 5.11 | |
| DOH | days | 87.35 | 85.65 | 86.39 | 83.96 | 75.89 | 76.28 | 73.24 | 73.46 | 67.32 | 63.08 | 66.91 | 65.91 | 67.57 | 69.46 | 74.51 | 72.60 | 74.43 | 75.27 | 73.35 | 71.42 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.18
= 87.35
Days of inventory on hand (DOH) is a financial ratio that measures how many days, on average, a company holds inventory before it is sold. For Martin Marietta Materials Inc, the trend in DOH over the past few years has shown some fluctuations.
From March 2020 to December 2020, DOH remained relatively stable, ranging from around 71 to 75 days. However, in the first half of 2021, there was a slight increase in DOH, reaching around 74-75 days.
In the second half of 2021, there was a notable improvement in inventory management as DOH decreased consistently. By December 2021, DOH had dropped to 67.57 days, showing more efficient inventory turnover. This trend continued into the first half of 2022, with DOH reaching a low of 63.08 days.
However, from March 2022 to December 2024, DOH started to increase again, reaching a peak of 87.35 days by December 2024. This indicates that the company may be experiencing challenges in managing its inventory efficiently or facing issues related to inventory turnover.
In conclusion, while Martin Marietta Materials Inc was able to improve its inventory management in the past, the recent increase in DOH suggests a potential need for the company to revisit its inventory control policies and strategies to optimize its working capital and operational efficiency.
Peer comparison
Dec 31, 2024