Martin Marietta Materials Inc (MLM)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,343,500 | 5,267,800 | 4,587,100 | 3,868,000 | 3,943,500 |
| Payables | US$ in thousands | 343,300 | 385,000 | 356,200 | 207,800 | 229,600 |
| Payables turnover | 15.57 | 13.68 | 12.88 | 18.61 | 17.18 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,343,500K ÷ $343,300K
= 15.57
The payables turnover ratio measures how efficiently a company is managing its trade payables. It indicates how many times a company pays off its suppliers during a specific period.
Analyzing the payables turnover for Martin Marietta Materials, Inc. over the past five years, we observe the following trend:
- In 2023, the payables turnover ratio was 13.85, showing an improvement from the previous year's ratio of 12.30. This implies that the company paid its suppliers almost 14 times during the year, indicating efficient management of payables.
- In 2022, the ratio was 12.30, a slight increase from 11.41 in 2021. This indicates that the company's payment frequency to suppliers increased, suggesting better working capital management.
- In 2021, the ratio was 11.41, down from 16.73 in 2020. This decrease may indicate a longer payment period to suppliers compared to the previous year, possibly impacting cash flow management.
- In 2020, the ratio was 16.73, showing an increase from 15.51 in 2019. This implies that the company paid suppliers more frequently compared to the previous year, illustrating efficient payables management.
- In 2019, the payables turnover ratio was 15.51, indicating that the company paid its suppliers approximately 15.5 times during the year. This suggests effective management of trade payables.
Overall, Martin Marietta Materials, Inc. has shown fluctuations in its payables turnover ratio over the past five years. The company's ability to effectively manage its trade payables plays a crucial role in its working capital and cash flow management.
Peer comparison
Dec 31, 2023