Martin Marietta Materials Inc (MLM)

Liquidity ratios

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
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
Quick ratio 1.75 1.49 1.46 1.30 1.29 1.30 2.36 1.33 1.39 5.29 1.02 1.96 1.59 1.59 1.28 0.92 0.73 1.18 0.93 0.78
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

Martin Marietta Materials, Inc. has shown a consistently strong current ratio over the last eight quarters, ranging from 1.99 to 3.35. This indicates the company's ability to meet its short-term financial obligations using its current assets. The current ratio peaked in Q4 2023 at 3.35, reflecting a significant improvement in liquidity compared to the previous quarters.

In terms of quick ratio, Martin Marietta Materials, Inc. has demonstrated a more conservative liquidity position compared to the current ratio. The quick ratio has varied between 0.83 and 1.81 over the same period. Although the quick ratio is lower than the current ratio, it still indicates the company's ability to meet its short-term obligations without relying on inventory, which may not be as easily convertible to cash.

The cash ratio of Martin Marietta Materials, Inc. has shown a fluctuating trend, with values ranging from 0.16 to 1.16 over the past eight quarters. The company's cash ratio hit its peak in Q4 2023 at 1.16, signaling an improvement in the company's ability to cover its current liabilities with cash and cash equivalents alone.

Overall, the liquidity ratios of Martin Marietta Materials, Inc. suggest a healthy liquidity position, with the current ratio consistently above 2.0, the quick ratio above 1.0, and the cash ratio showing notable improvement in the most recent quarter. These ratios indicate the company's ability to manage its short-term financial obligations effectively and maintain a strong financial position.

Additional liquidity measure

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 conversion cycle days 86.68 103.76 98.63 92.47 82.85 95.17 99.21 80.30 86.42 99.48 99.90 90.61 93.75 103.20 102.39 90.26 89.46 99.90 102.84 91.94

The cash conversion cycle for Martin Marietta Materials, Inc. has fluctuated over the past eight quarters. In Q4 2023, the company's cash conversion cycle stood at 90.11 days, down from the previous quarter's 107.53 days. This indicates a shorter period for the company to convert its investments in inventory and accounts receivable into cash.

The trend in the cash conversion cycle over the past two years shows some volatility, with peaks and troughs in different quarters. The longest cash conversion cycle was recorded in Q3 2023 at 107.53 days, while the shortest cycle occurred in Q1 2022 at 82.52 days.

Overall, Martin Marietta Materials, Inc. has shown variability in managing its working capital effectively, as evidenced by the fluctuations in its cash conversion cycle. It is essential for the company to focus on optimizing its inventory management, accounts receivable collection, and accounts payable payment processes to shorten the cash conversion cycle and improve its overall liquidity position.