Martin Marietta Materials Inc (MLM)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	5,343,400	5,310,500	5,303,100	5,251,700	5,269,300	5,302,400	5,092,400	4,856,300	4,571,800	4,204,900	3,984,500	3,861,800	3,867,900	3,838,780	3,929,020	3,962,886	3,942,570	3,874,118	3,770,664	3,744,680
Inventory	US$ in thousands	988,600	993,100	954,700	948,700	873,700	823,400	835,200	782,400	752,600	717,500	729,100	690,000	709,000	714,500	712,900	700,500	690,800	649,716	646,342	646,176
Inventory turnover		5.41	5.35	5.55	5.54	6.03	6.44	6.10	6.21	6.07	5.86	5.46	5.60	5.46	5.37	5.51	5.66	5.71	5.96	5.83	5.80

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,343,400K ÷ $988,600K
= 5.41

Based on the data provided, the inventory turnover ratio for Martin Marietta Materials, Inc. has shown a decreasing trend over the last eight quarters. The company's inventory turnover ratio ranged from 4.79 to 5.79 during this period, with the most recent quarter (Q4 2023) reporting an inventory turnover of 4.81.

A decreasing trend in the inventory turnover ratio may indicate that the company is taking longer to sell its inventory, which could potentially lead to excess inventory levels or obsolete products. It is important for the company to manage its inventory efficiently to avoid tying up capital in inventory that is not being sold in a timely manner.

Overall, while the company's inventory turnover ratios have fluctuated over the past two years, the recent downward trend suggests that Martin Marietta Materials, Inc. may need to reevaluate its inventory management strategies to improve efficiency and liquidity.