Martin Marietta Materials Inc (MLM)

Working capital 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
Total current assets	US$ in thousands	3,918,900	2,817,400	3,192,300	2,812,700	2,876,900	2,847,300	2,760,300	1,987,500	2,025,600	4,000,700	1,616,300	1,675,700	1,668,300	1,652,800	1,587,100	1,833,000	1,426,700	1,578,400	1,533,120	1,370,110
Total current liabilities	US$ in thousands	1,170,200	1,141,100	1,442,400	1,328,000	1,445,600	1,419,700	761,400	712,900	752,600	601,200	758,000	448,800	499,300	506,200	595,300	1,075,600	838,500	688,982	822,216	757,637
Working capital turnover		2.41	3.86	3.60	4.12	4.19	4.21	2.88	4.32	4.14	1.46	5.54	3.79	3.95	3.95	4.66	6.12	7.84	5.13	6.13	6.98

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,611,800K ÷ ($3,918,900K – $1,170,200K)
= 2.41

The working capital turnover for Martin Marietta Materials, Inc. has shown fluctuations over the past eight quarters. The ratio peaked at 4.44 in Q1 2022 and then dropped to 2.96 in Q2 2022 before gradually recovering and reaching 4.23 in Q1 2023. Q4 2022 saw a slightly higher turnover of 4.30 compared to the following quarters. However, the turnover ratio significantly increased in Q3 2023 to 3.96, dropping slightly to 2.47 in Q4 2023.

Overall, the working capital turnover ratio for Martin Marietta Materials, Inc. demonstrates that the company's ability to efficiently utilize its working capital to generate revenue has fluctuated. A higher turnover ratio indicates that the company is effectively using its working capital to support its operations and generate sales. However, the fluctuations observed in the data suggest potential variability in the company's working capital management efficiency over the analyzed period. Further analysis and comparison with industry benchmarks may provide additional insights into the company's financial performance and efficiency.