Martin Marietta Materials Inc (MLM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 670,000 | 1,271,800 | 358,000 | 258,400 | 207,300 |
| Short-term investments | US$ in thousands | — | — | 704,600 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,016,000 | 1,170,200 | 1,445,600 | 752,600 | 499,300 |
| Quick ratio | 0.66 | 1.09 | 0.74 | 0.34 | 0.42 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($670,000K
+ $—K
+ $—K)
÷ $1,016,000K
= 0.66
The quick ratio of Martin Marietta Materials Inc has shown variability over the past five years.
At the end of December 2020 and December 2021, the quick ratio stood at 0.42 and 0.34 respectively, indicating that the company had lower liquidity and may face challenges in meeting its short-term obligations with its most liquid assets.
However, there was a noticeable improvement by the end of December 2022, when the quick ratio increased to 0.74. This suggests that the company had better liquidity to cover its short-term liabilities with its quick assets.
By the end of December 2023, the quick ratio further improved to 1.09, indicating that Martin Marietta Materials Inc had significantly strengthened its liquidity position. This may suggest improved financial health and decreased the risk of default on its short-term obligations.
However, there was a slight decline in the quick ratio by the end of December 2024, where it dipped to 0.66. While still above the 1.0 threshold, the decrease from the previous year may warrant further investigation into the company's ability to meet its short-term obligations with its readily available assets.
Overall, the trend in the quick ratio of Martin Marietta Materials Inc shows a mixed performance, with improvements in liquidity in some years and a slight dip in others. Investors and stakeholders may want to keep a close eye on the company's liquidity position to assess its ability to manage short-term financial commitments effectively.
Peer comparison
Dec 31, 2024