Martin Marietta Materials Inc (MLM)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.48 2.34 1.86 3.16 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
Quick ratio 0.13 0.05 0.09 1.85 1.10 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
Cash ratio 0.13 0.05 0.09 1.85 1.10 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

The current ratio of Martin Marietta Materials Inc has shown fluctuations over the years, with a general increasing trend from 1.70 in March 2020 to a peak of 6.65 in September 2021 before declining to 0.48 in December 2024. This indicates the company's ability to cover its short-term liabilities with its current assets, with a ratio above 1 considered favorable.

In contrast, the quick ratio, which excludes inventory from current assets, has displayed more volatility over the same period, ranging from a low of 0.07 in June 2021 to a high of 3.96 in September 2021. Although the ratio improved in the following years, it dropped to 0.13 by December 2024, signaling a potential liquidity strain without relying on inventory liquidation.

The cash ratio, which further narrows down the quick assets to only cash and cash equivalents, followed a similar pattern to the quick ratio, demonstrating fluctuations but generally above 0.5 in most periods, except for a low of 0.05 in September 2024. This metric indicates MM Materials' ability to cover its current liabilities with the most liquid assets on hand.

Overall, while the current ratio suggests adequate liquidity levels for Martin Marietta Materials Inc, the quick and cash ratios portray a more conservative view of the company's ability to cover its short-term obligations with its most liquid assets. Investors and stakeholders should track these ratios to assess the company's short-term liquidity position accurately.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 87.35 85.65 86.39 83.96 75.89 76.28 73.24 73.46 67.32 63.08 66.91 65.91 67.57 69.46 74.51 72.60 74.43 75.27 73.35 71.42

The cash conversion cycle of Martin Marietta Materials Inc has shown fluctuations over the reported periods. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020 to June 30, 2022, the cash conversion cycle decreased steadily from 71.42 days to 66.91 days, indicating an improvement in efficiency in managing its working capital. However, from September 30, 2022 to December 31, 2024, the cycle increased consistently from 63.08 days to 87.35 days, suggesting potential challenges in converting assets into cash.

The company experienced a peak in the cash conversion cycle by the end of December 2024, which could indicate issues with inventory management or delays in collecting receivables. It is crucial for Martin Marietta Materials Inc to closely monitor and analyze its cash conversion cycle to ensure effective working capital management and maximize its cash flows.