Martin Marietta Materials Inc (MLM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 670,000 | 1,271,800 | 358,000 | 258,400 | 207,300 |
| Short-term investments | US$ in thousands | — | — | 704,600 | — | — |
| Total current liabilities | US$ in thousands | 1,016,000 | 1,170,200 | 1,445,600 | 752,600 | 499,300 |
| Cash ratio | 0.66 | 1.09 | 0.74 | 0.34 | 0.42 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($670,000K
+ $—K)
÷ $1,016,000K
= 0.66
The cash ratio of Martin Marietta Materials Inc has fluctuated over the past five years. The cash ratio was 0.42 as of December 31, 2020, indicating that for every dollar of current liabilities, the company had $0.42 in cash and cash equivalents available to cover immediate obligations.
By December 31, 2021, the cash ratio decreased to 0.34, suggesting a slight decrease in the company's ability to meet short-term liabilities solely with cash on hand. However, there was a significant improvement by December 31, 2022, with the cash ratio jumping to 0.74, indicating an increase in liquidity and the company's ability to cover its short-term obligations.
The trend continued to improve in the subsequent years, with the cash ratio reaching 1.09 by December 31, 2023, signaling a substantial improvement in the company's liquidity position. However, there was a slight decrease in the cash ratio to 0.66 by December 31, 2024.
Overall, the company's cash ratio has shown variability over the years, with periods of improvement and slight declines. It is essential for investors and stakeholders to monitor this ratio to assess the company's ability to meet its short-term obligations with its available cash resources.
Peer comparison
Dec 31, 2024