Martin Marietta Materials Inc (MLM)

Current 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
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
Current ratio		3.35	2.47	2.21	2.12	1.99	2.01	3.63	2.79	2.69	6.65	2.13	3.73	3.34	3.27	2.67	1.70	1.70	2.29	1.86	1.81

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 shown fluctuations over the past eight quarters, ranging from a high of 3.63 in Q2 2022 to a low of 1.99 in Q4 2022. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.

The current ratio has generally been above 2.0 in most quarters, indicating that the company has a strong ability to meet its short-term obligations with its current assets. However, there are some quarters where the current ratio dipped below 2.0, which may suggest a potential liquidity risk during those periods.

It's worth noting that the current ratio peaked at 3.63 in Q2 2022, indicating that at that time, the company had a significant cushion of current assets to cover its current liabilities. In Q4 2023, the current ratio improved to 3.35 from the previous quarter, suggesting an improvement in the company's short-term liquidity position.

Overall, Martin Marietta Materials, Inc. has maintained a healthy current ratio above 2.0 in most quarters, which is a positive sign of its ability to manage its short-term financial obligations. However, monitoring the trend of the current ratio over time can provide valuable insights into the company's liquidity management and financial health.