Martin Marietta Materials Inc (MLM)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,611,800 | 6,477,700 | 6,293,300 | 6,113,300 | 5,994,600 | 6,009,400 | 5,753,500 | 5,504,700 | 5,270,300 | 4,974,600 | 4,754,300 | 4,643,900 | 4,615,000 | 4,529,960 | 4,625,070 | 4,631,840 | 4,610,360 | 4,558,440 | 4,354,800 | 4,278,060 |
| Property, plant and equipment | US$ in thousands | 6,185,900 | 6,352,700 | 6,312,800 | 6,279,500 | 6,316,700 | 6,153,800 | 6,164,300 | 6,208,900 | 6,338,000 | 5,610,500 | 5,549,000 | 5,335,400 | 5,242,300 | 5,180,500 | 5,160,500 | 5,185,400 | 5,206,000 | 5,132,150 | 5,132,680 | 5,146,680 |
| Fixed asset turnover | 1.07 | 1.02 | 1.00 | 0.97 | 0.95 | 0.98 | 0.93 | 0.89 | 0.83 | 0.89 | 0.86 | 0.87 | 0.88 | 0.87 | 0.90 | 0.89 | 0.89 | 0.89 | 0.85 | 0.83 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,611,800K ÷ $6,185,900K
= 1.07
The fixed asset turnover ratio of Martin Marietta Materials, Inc. has shown a generally increasing trend over the past eight quarters.
In Q1 2022, the ratio was at 0.91, indicating that the company generated $0.91 in revenue for every dollar invested in fixed assets. The ratio increased in the following quarters, reaching 1.00 in Q1 2023, which suggests that the company was able to generate exactly the same revenue as the value of its fixed assets.
The trend continued as the ratio further improved to 1.02 and 1.05 in Q2 and Q3 2023 respectively, showing that the company was becoming more efficient in utilizing its fixed assets to generate revenue. By Q4 2023, the fixed asset turnover ratio had reached 1.10, indicating a significant improvement in the company's asset utilization efficiency.
This trend suggests that Martin Marietta Materials, Inc. has been able to increase its revenue generation relative to its investment in fixed assets over the past two years. It also indicates that the company's management has been effective in maximizing the productivity of its fixed assets, which is a positive sign for potential investors and creditors.
Peer comparison
Dec 31, 2023