Martin Marietta Materials Inc (MLM)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	6,611,900	5,991,700	5,293,000	4,684,800	4,612,900
Property, plant and equipment	US$ in thousands	6,185,900	6,316,700	6,338,000	5,242,300	5,206,000
Fixed asset turnover		1.07	0.95	0.84	0.89	0.89

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,611,900K ÷ $6,185,900K
= 1.07

The fixed asset turnover ratio for Martin Marietta Materials, Inc. has shown a positive trend over the past five years. The ratio increased from 0.91 in 2019 to 1.10 in 2023, indicating that the company is generating more revenue relative to its fixed assets invested in its operations. This improvement suggests that Martin Marietta Materials, Inc. has been able to utilize its fixed assets more efficiently to generate sales.

A fixed asset turnover ratio of 1.10 in 2023 means that the company generated $1.10 in revenue for every dollar invested in fixed assets. This indicates that the company is effectively using its fixed assets to drive sales growth.

Overall, the increasing trend in the fixed asset turnover ratio demonstrates that Martin Marietta Materials, Inc. has been successful in managing and utilizing its fixed assets efficiently to support its business operations and revenue generation.