Martin Marietta Materials Inc (MLM)
Working capital 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 current assets | US$ in thousands | 3,918,900 | 2,876,900 | 2,025,600 | 1,668,300 | 1,426,700 |
| Total current liabilities | US$ in thousands | 1,170,200 | 1,445,600 | 752,600 | 499,300 | 838,500 |
| Working capital turnover | 2.41 | 4.19 | 4.16 | 4.01 | 7.84 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,611,900K ÷ ($3,918,900K – $1,170,200K)
= 2.41
The working capital turnover ratio for Martin Marietta Materials, Inc. has shown some fluctuations over the five-year period from 2019 to 2023. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.
In 2019, the working capital turnover was relatively high at 8.06, indicating that the company was able to generate $8.06 in revenue for every $1 of working capital invested. This suggests effective management of its current assets and liabilities to support its operations.
However, in the following years, the working capital turnover ratio declined. In 2020, it decreased to 4.05, signaling a decrease in efficiency in utilizing working capital to generate revenue. The ratio improved in 2021 and 2022, reaching 4.25 and 4.30, respectively, but remained below the 2019 level.
By the end of 2023, the working capital turnover ratio further decreased to 2.47, indicating a significant drop in efficiency compared to previous years. This suggests that the company may be experiencing challenges in managing its working capital effectively to support its revenue generation.
Overall, the trend in Martin Marietta Materials, Inc.'s working capital turnover ratio reflects some fluctuations, indicating potential changes in the company's working capital management practices and their impact on revenue generation efficiency.
Peer comparison
Dec 31, 2023