Martin Marietta Materials Inc (MLM)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,611,900 | 5,991,700 | 5,293,000 | 4,684,800 | 4,612,900 |
| Receivables | US$ in thousands | 771,600 | 804,800 | 790,800 | 587,400 | 590,600 |
| Receivables turnover | 8.57 | 7.44 | 6.69 | 7.98 | 7.81 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,611,900K ÷ $771,600K
= 8.57
Martin Marietta Materials, Inc.'s receivables turnover has shown a fluctuating trend over the past five years. The company's ability to efficiently collect receivables improved significantly in 2023 with a turnover ratio of 9.00, indicating that it converted its accounts receivable into cash 9 times during the year. This represents a positive sign of effective credit management and faster collection of outstanding debts.
Comparing the 2023 ratio to previous years, it is notably higher than in 2022 (7.84) and 2021 (6.99). However, it is slightly lower than the ratios in 2020 (8.22) and 2019 (8.26). This suggests that in 2023, Martin Marietta Materials, Inc. was more efficient in collecting receivables than in recent previous years, except for 2020 and 2019 when the turnover was marginally higher.
Overall, the increasing trend in receivables turnover from 2021 to 2023 indicates that the company has been improving its collection process and managing credit effectively. A higher turnover ratio indicates that the company is collecting outstanding receivables more quickly, which can positively impact cash flow and liquidity.
Peer comparison
Dec 31, 2023