Martin Marietta Materials Inc (MLM)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	3,918,900	2,876,900	2,025,600	1,668,300	1,426,700
Total current liabilities	US$ in thousands	1,170,200	1,445,600	752,600	499,300	838,500
Current ratio		3.35	1.99	2.69	3.34	1.70

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,918,900K ÷ $1,170,200K
= 3.35

The current ratio of Martin Marietta Materials, Inc. has exhibited fluctuations over the past five years. As of December 31, 2023, the current ratio stands at 3.35, indicating an improvement from the previous year when it was at 1.99. This substantial increase in the current ratio suggests that the company's current assets are more than three times its current liabilities, reflecting a strong liquidity position.

In comparison to 2021 and 2020 when the current ratios were 2.69 and 3.34, respectively, the current ratio for 2023 is comparatively higher, indicating improved liquidity. Furthermore, when compared to 2019 when the current ratio was 1.70, the current financial position of the company seems to have significantly strengthened.

The increasing trend in the current ratio over the past few years implies that Martin Marietta Materials, Inc. has been effectively managing its current assets and liabilities. A high current ratio signifies that the company has the ability to meet its short-term obligations comfortably using its current assets.