Martin Marietta Materials Inc (MLM)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,271,800	647,600	421,500	229,400	358,000	135,700	772,100	189,600	258,400	2,381,400	53,100	313,900	207,300	116,600	70,100	424,000	21,000	49,100	53,595	37,357
Short-term investments	US$ in thousands	—	—	702,300	702,300	704,600	704,600	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		1.09	0.57	0.78	0.70	0.74	0.59	1.01	0.27	0.34	3.96	0.07	0.70	0.42	0.23	0.12	0.39	0.03	0.07	0.07	0.05

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,271,800K + $—K) ÷ $1,170,200K
= 1.09

The cash ratio of Martin Marietta Materials, Inc. has shown fluctuations over the last eight quarters. It increased from 0.30 in Q4 2022 to 1.16 in Q4 2023, indicating a significant improvement in the company's ability to cover its short-term liabilities with cash and cash equivalents.

Although the cash ratio decreased slightly in Q3 2023 to 0.64, it remained above 1.00, suggesting that the company had sufficient liquid assets to meet its immediate obligations comfortably. The ratio further dropped to 0.35 in Q2 2023 and 0.23 in Q1 2023, indicating a decline in the proportion of cash and cash equivalents relative to current liabilities.

In Q2 2022, Martin Marietta Materials, Inc. experienced a notably high cash ratio of 1.10, signifying a strong liquidity position. However, this ratio decreased in Q3 2022 to 0.16 and then fluctuated around 0.46 in Q1 2022.

Overall, the company's cash ratio has exhibited volatility, with periods of both improvement and decline. It would be important for stakeholders to monitor this ratio closely to assess the company's liquidity position and ability to meet its short-term financial obligations effectively.