Martin Marietta Materials Inc (MLM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.59% | 23.75% | 25.48% | 26.74% | 25.56% |
| Operating profit margin | 24.14% | 20.14% | 18.40% | 21.46% | 19.18% |
| Pretax margin | 22.10% | 18.39% | 16.17% | 18.98% | 16.22% |
| Net profit margin | 17.68% | 14.47% | 13.27% | 15.39% | 13.26% |
Martin Marietta Materials, Inc. has demonstrated a consistent improvement in its profitability ratios over the past five years.
The gross profit margin has fluctuated slightly but has generally shown an increasing trend, reaching 29.84% in 2023 from 24.88% in 2019. This indicates the company has been able to increase its revenue while effectively managing its cost of goods sold.
Similarly, the operating profit margin has shown a positive trend, with a significant improvement from 18.68% in 2019 to 23.73% in 2023. This suggests that the company has been successful in controlling its operating expenses and improving operational efficiency.
The pretax margin has also demonstrated a consistent uptrend, increasing from 15.79% in 2019 to 22.03% in 2023. This indicates that Martin Marietta Materials, Inc. has been able to generate higher profits before accounting for taxes, showcasing effective financial management.
Moreover, the net profit margin has shown steady growth over the years, increasing from 12.89% in 2019 to 17.25% in 2023. This reflects the company's ability to generate more profits after accounting for all expenses, including taxes.
Overall, the improvement in profitability ratios suggests that Martin Marietta Materials, Inc. has been successful in enhancing its operational efficiency, managing costs effectively, and generating higher profits, indicating a positive outlook for the company's financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.55% | 8.05% | 6.77% | 9.50% | 8.73% |
| Return on assets (ROA) | 7.73% | 5.78% | 4.88% | 6.81% | 6.04% |
| Return on total capital | 13.58% | 11.04% | 8.58% | 11.83% | 11.27% |
| Return on equity (ROE) | 14.55% | 12.09% | 10.75% | 12.24% | 11.44% |
The profitability ratios of Martin Marietta Materials, Inc. show a generally positive trend over the past five years.
1. Operating return on assets (Operating ROA) has increased steadily from 7.17% in 2021 to 10.63% in 2023. This indicates that the company is generating a higher operating profit from its assets over time.
2. Return on assets (ROA) has also improved, rising from 4.88% in 2021 to 7.73% in 2023. This demonstrates the company's ability to generate profit from its total assets.
3. Return on total capital has consistently increased, reflecting a strong performance in capital utilization. The ratio reached 12.99% in 2023, showing an improvement from 8.87% in 2021.
4. Return on equity (ROE) has experienced a growth trend, increasing from 10.74% in 2021 to 14.56% in 2023. This suggests that the company has been effective in generating profit for its shareholders.
Overall, the profitability ratios of Martin Marietta Materials, Inc. indicate a positive performance in effectively utilizing assets, capital, and equity to generate returns for the company and its shareholders over the past five years.