Martin Marietta Materials Inc (MLM)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,536,000 | 6,777,200 | 6,160,700 | 5,414,000 | 4,729,900 |
| Total current assets | US$ in thousands | 2,542,000 | 3,918,900 | 2,876,900 | 2,025,600 | 1,668,300 |
| Total current liabilities | US$ in thousands | 1,016,000 | 1,170,200 | 1,445,600 | 752,600 | 499,300 |
| Working capital turnover | 4.28 | 2.47 | 4.30 | 4.25 | 4.05 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,536,000K ÷ ($2,542,000K – $1,016,000K)
= 4.28
Based on the data provided for Martin Marietta Materials Inc, the working capital turnover has fluctuated over the past five years. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue.
In 2020, the working capital turnover ratio was 4.05, indicating that for every dollar of working capital, the company generated $4.05 in sales revenue. This suggests a relatively efficient use of working capital.
The ratio increased to 4.25 in 2021, showing a further improvement in efficiency. The company continued to improve its working capital turnover in 2022, reaching a ratio of 4.30.
However, in 2023, the working capital turnover ratio decreased significantly to 2.47. This decline may indicate that the company's working capital management became less effective that year, possibly due to changes in the company's operations or financial management.
In 2024, the ratio bounced back to 4.28, showing a return to a higher level of efficiency in utilizing working capital to generate sales revenue.
Overall, the fluctuations in Martin Marietta Materials Inc's working capital turnover ratio over the five-year period suggest changes in the company's working capital management practices and operational efficiency. Further analysis would be needed to understand the specific factors driving these fluctuations and their implications for the company's financial performance.
Peer comparison
Dec 31, 2024