Martin Marietta Materials Inc (MLM)
Total asset 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 |
| Total assets | US$ in thousands | 15,124,900 | 14,993,600 | 14,393,000 | 10,580,800 | 10,131,600 |
| Total asset turnover | 0.44 | 0.40 | 0.37 | 0.44 | 0.46 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,611,900K ÷ $15,124,900K
= 0.44
Martin Marietta Materials, Inc.'s total asset turnover has shown fluctuations in recent years. The total asset turnover ratio measures the efficiency with which the company utilizes its assets to generate revenue. The higher the ratio, the better the company is at using its assets to generate sales.
In 2023, the total asset turnover ratio stands at 0.45, indicating that for each dollar of assets, the company generates $0.45 in sales. This marks an improvement from the previous year, where the ratio was 0.41. Despite the increase, the ratio in 2023 remains below the levels seen in 2020 and 2019, which were 0.45 and 0.47 respectively.
The fluctuation in the total asset turnover ratio suggests that there may have been changes in how efficiently Martin Marietta Materials, Inc. is utilizing its assets to generate revenue. Further analysis of the company's operations and financial performance would be necessary to identify the underlying factors driving these fluctuations and to assess the overall effectiveness of asset utilization in contributing to the company's revenue generation.
Peer comparison
Dec 31, 2023