Martin Marietta Materials Inc (MLM)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,658,000 | 4,754,600 | 4,737,400 | 4,065,600 | 3,477,100 |
| Inventory | US$ in thousands | 1,115,000 | 988,600 | 873,700 | 752,600 | 709,000 |
| Inventory turnover | 4.18 | 4.81 | 5.42 | 5.40 | 4.90 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,658,000K ÷ $1,115,000K
= 4.18
Martin Marietta Materials Inc's inventory turnover has shown a generally increasing trend over the past five years, from 4.90 in 2020 to 4.18 in 2024. This indicates that the company is managing its inventory more efficiently, as it takes less time to sell and replace its inventory. A higher inventory turnover ratio suggests that the company is able to sell its goods faster and convert them into revenue, potentially reducing carrying costs and minimizing the risk of obsolescence. However, the slight decrease in 2024 compared to the previous year may warrant further investigation to understand potential reasons behind this decline. Overall, the improving trend in inventory turnover reflects positively on Martin Marietta Materials Inc's inventory management efficiency.
Peer comparison
Dec 31, 2024