Martin Marietta Materials Inc (MLM)

Receivables 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
Revenue (ttm)	US$ in thousands	6,611,800	6,477,700	6,293,300	6,113,300	5,994,600	6,009,400	5,753,500	5,504,700	5,270,300	4,974,600	4,754,300	4,643,900	4,615,000	4,529,960	4,625,070	4,631,840	4,610,360	4,558,440	4,354,800	4,278,060
Receivables	US$ in thousands	771,600	1,047,500	979,200	796,700	804,800	1,011,700	1,026,600	759,200	790,800	801,900	722,000	563,600	587,400	686,300	690,400	562,800	590,600	763,878	710,605	550,607
Receivables turnover		8.57	6.18	6.43	7.67	7.45	5.94	5.60	7.25	6.66	6.20	6.58	8.24	7.86	6.60	6.70	8.23	7.81	5.97	6.13	7.77

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,611,800K ÷ $771,600K
= 8.57

The receivables turnover for Martin Marietta Materials, Inc. fluctuated over the past eight quarters, ranging from a low of 5.77 in Q2 2022 to a high of 9.00 in Q4 2023. This ratio indicates how efficiently the company is collecting cash from its customers. A higher receivables turnover is generally preferable as it implies that the company is collecting its accounts receivable quickly.

In Q4 2023, the receivables turnover was 9.00, which means that, on average, the company collected its accounts receivable 9 times during the quarter. This is an improvement from the previous quarter (Q3 2023) where the ratio was 6.34. The increase in receivables turnover from Q3 2023 to Q4 2023 indicates that Martin Marietta Materials, Inc. was more effective in collecting cash from its customers in the most recent quarter.

Overall, the trend in receivables turnover for Martin Marietta Materials, Inc. seems to be improving, which is a positive indicator of the company's ability to manage its accounts receivable efficiently. It suggests that the company is effectively managing its credit policies and collecting cash from customers in a timely manner.