Martin Marietta Materials Inc (MLM)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,659,000 | 4,640,700 | 4,668,800 | 4,682,200 | 4,754,500 | 4,752,100 | 4,757,900 | 4,714,000 | 4,737,400 | 4,764,800 | 4,556,300 | 4,332,600 | 4,065,600 | 3,770,100 | 3,571,600 | 3,468,900 | 3,477,000 | 3,464,641 | 3,547,342 | 3,579,843 |
| Inventory | US$ in thousands | 1,115,000 | 1,089,000 | 1,105,000 | 1,077,000 | 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 |
| 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,659,000K ÷ $1,115,000K
= 4.18
Martin Marietta Materials Inc's inventory turnover has shown a generally stable trend over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating the number of times the company sells and replaces its inventory during a specific period.
The inventory turnover ratio decreased slightly from 5.11 on March 31, 2020, to 4.98 on June 30, 2020, and further to 4.85 on September 30, 2020. This decline in the ratio may signal a potential issue with inventory management efficiency. However, the ratio recovered to 5.03 on March 31, 2021, indicating improvement in inventory turnover.
Subsequently, the inventory turnover ratio fluctuated around an average level, with values ranging between 4.90 to 5.54 until June 30, 2022. Notably, the ratio peaked at 5.79 on September 30, 2022, before declining to 4.81 on December 31, 2023.
Towards the end of the period under review, the inventory turnover ratio decreased further to 4.18 on December 31, 2024. This decline may suggest potential challenges in effectively managing and turning over inventory, which can impact the company's cash flow and profitability.
Overall, while the company's inventory turnover ratio exhibited some fluctuations, it is essential for Martin Marietta Materials Inc to closely monitor and improve its inventory management practices to enhance operational efficiency and maintain healthy financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024