Martin Marietta Materials Inc (MLM)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 87.37 | 75.89 | 67.32 | 67.57 | 74.43 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 87.37 | 75.89 | 67.32 | 67.57 | 74.43 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 87.37 + — – —
= 87.37
The cash conversion cycle of Martin Marietta Materials Inc has shown a fluctuating trend over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 74.43 days, indicating that it took approximately 74 days for the company to convert its investments in raw materials into cash flows from sales.
Subsequently, there was a slight improvement in efficiency by the end of December 31, 2021, with the cash conversion cycle decreasing to 67.57 days. This implies a reduction in the time required for the company to convert its resources into cash.
By December 31, 2022, the cash conversion cycle experienced a further decrease to 67.32 days, suggesting that the company continued to enhance its operational efficiency in managing working capital.
However, by December 31, 2023, there was a slight increase in the cash conversion cycle to 75.89 days, signifying a potential delay in the company's conversion of investments into cash compared to the previous year.
The trend reversed in the most recent year ending December 31, 2024, with the cash conversion cycle escalating to 87.37 days. This increase indicates a lengthening of the period required for the company to convert its investments into cash, potentially reflecting challenges in managing working capital effectively.
Overall, fluctuations in Martin Marietta Materials Inc's cash conversion cycle reflect variations in the company's working capital management efficiency over the five-year period, with potential implications for its cash flow and liquidity position.
Peer comparison
Dec 31, 2024