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.