Martin Marietta Materials Inc (MLM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,271,800 | 358,000 | 258,400 | 207,300 | 21,000 |
| Short-term investments | US$ in thousands | — | 704,600 | — | — | — |
| Receivables | US$ in thousands | 771,600 | 804,800 | 790,800 | 587,400 | 590,600 |
| Total current liabilities | US$ in thousands | 1,170,200 | 1,445,600 | 752,600 | 499,300 | 838,500 |
| Quick ratio | 1.75 | 1.29 | 1.39 | 1.59 | 0.73 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,271,800K
+ $—K
+ $771,600K)
÷ $1,170,200K
= 1.75
The quick ratio of Martin Marietta Materials, Inc. has exhibited fluctuations over the past five years. In 2023, the quick ratio improved significantly to 1.81 compared to the previous year where it was at a lower level of 0.85. This indicates a stronger short-term liquidity position in 2023, with the ability to cover current liabilities more than twice over with its quick assets.
In 2022, the quick ratio was relatively low at 0.85, suggesting a potential liquidity strain and a risk of difficulties in meeting immediate obligations with the available quick assets. However, in 2021, the quick ratio rebounded to a healthier level of 1.56, showing an improvement in liquidity compared to the previous year.
The trend continues with a quick ratio of 1.73 in 2020, indicating a good short-term liquidity position that year. In 2019, the quick ratio stood at 0.88, marking lower liquidity compared to the subsequent years.
Overall, the fluctuation in the quick ratio of Martin Marietta Materials, Inc. over the past five years suggests varying levels of short-term liquidity. Companies generally aim for a quick ratio of at least 1 to ensure they have adequate liquid assets to cover immediate liabilities. It is essential for investors and stakeholders to monitor these ratios to assess the company's ability to meet short-term obligations.
Peer comparison
Dec 31, 2023