Martin Marietta Materials Inc (MLM)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | 4.91 | 6.41 | 2.16 | 2.47 | 3.96 | 3.69 | 4.23 | 4.30 | 4.33 | 2.96 | 4.44 | 4.25 | 1.50 | 5.66 | 3.87 | 4.05 | 4.06 | 4.79 | 6.28 |
Martin Marietta Materials Inc has shown a stable trend in its inventory turnover ratio over the years, ranging from 4.18 to 5.79 times. This indicates the company's efficiency in managing its inventory levels and converting them into sales within a specific period.
The receivables turnover ratio data is not available, which makes it challenging to assess the efficiency of the company in collecting its receivables from customers.
Similarly, the payables turnover ratio is not provided, leading to a lack of insight into how effectively the company manages its trade payables.
In terms of the working capital turnover ratio, Martin Marietta Materials Inc has witnessed fluctuations throughout the periods. The ratio has varied from 1.50 to 6.41 times, reflecting the company's effectiveness in generating revenue relative to its working capital investment. Overall, the company should focus on maintaining a balance between working capital efficiency and operational performance to ensure sustainable growth.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 87.35 | 85.65 | 86.39 | 83.96 | 75.89 | 76.28 | 73.24 | 73.46 | 67.32 | 63.08 | 66.91 | 65.91 | 67.57 | 69.46 | 74.51 | 72.60 | 74.43 | 75.27 | 73.35 | 71.42 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, we can analyze the activity ratios of Martin Marietta Materials Inc as follows:
1. Days of Inventory on Hand (DOH):
- The DOH represents the number of days it takes for the company to sell its average inventory. A lower DOH indicates that the company is selling its inventory more quickly.
- Over the period from March 31, 2020, to December 31, 2024, Martin Marietta Materials Inc saw fluctuations in its DOH ranging from 63.08 days to 87.35 days.
- The trend in DOH shows a decrease from March 31, 2022, to December 31, 2022, followed by an increase in inventory holding days from March 31, 2023, to December 31, 2024, ending at 87.35 days.
2. Days of Sales Outstanding (DSO):
- DSO shows the average number of days it takes for a company to collect its accounts receivable. A lower DSO typically indicates a more efficient collection process.
- The data provided does not include specific values for DSO, which may indicate that the company does not report this metric or its value is not available.
3. Number of Days of Payables:
- This ratio reflects the average number of days the company takes to pay its suppliers. A longer period suggests the company is taking longer to pay its bills.
- Similar to DSO, the data does not provide specific values for the number of days of payables, which may indicate that this information is not disclosed or available.
Overall, based on the information provided, we can see that Martin Marietta Materials Inc experienced fluctuations in its inventory holding days over the analyzed period. However, without data on DSO and the number of days of payables, a comprehensive assessment of the company's efficiency in managing receivables and payables is not possible.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 0.99 | 0.97 | 1.00 | 0.92 | 0.94 | 0.90 | 0.91 | 0.80 | 0.91 | 0.81 | 0.89 | 0.90 | 0.90 | 0.92 | 0.92 |
| Total asset turnover | 0.36 | 0.40 | 0.41 | 0.41 | 0.44 | 0.45 | 0.42 | 0.42 | 0.41 | 0.42 | 0.41 | 0.40 | 0.38 | 0.37 | 0.43 | 0.45 | 0.45 | 0.45 | 0.46 | 0.45 |
The Fixed Asset Turnover ratio of Martin Marietta Materials Inc has shown some fluctuations over the years. It decreased from 0.92 in March 2020 to 0.80 in December 2021, possibly indicating a lower level of efficiency in generating sales from fixed assets during this period. However, the ratio improved to 1.00 in March 2023, suggesting the company may have been utilizing its fixed assets more effectively to generate sales.
On the other hand, the Total Asset Turnover ratio reflects how efficiently the company is using its total assets to generate revenue. The ratio decreased from 0.45 in March 2020 to 0.37 in September 2021, indicating a decline in the overall efficiency of asset utilization during this period. However, there was a gradual improvement in the ratio from September 2022 onwards, reaching 0.40 by December 2024.
Overall, while the Fixed Asset Turnover ratio showed fluctuations, the Total Asset Turnover ratio demonstrated a mix of ups and downs but ultimately showed some improvement in the efficiency of asset utilization by the end of the period.