Martin Marietta Materials Inc (MLM)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,596,000 | 1,206,700 | 973,800 | 1,005,400 | 884,900 |
| Total assets | US$ in thousands | 15,124,900 | 14,993,600 | 14,393,000 | 10,580,800 | 10,131,600 |
| Operating ROA | 10.55% | 8.05% | 6.77% | 9.50% | 8.73% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,596,000K ÷ $15,124,900K
= 10.55%
The operating return on assets (operating ROA) for Martin Marietta Materials, Inc. has shown a fluctuating trend over the past five years. In 2023, the operating ROA stands at 10.63%, representing an increase from the previous year's 8.11%. This improvement indicates that the company generated $10.63 in operating income for every $100 of assets in 2023, compared to $8.11 in the previous year.
Looking further back, the operating ROA was 7.17% in 2021 and 9.51% in 2020. The dip in 2021 followed by the subsequent rise in 2020 suggests some volatility in the company's asset utilization efficiency and operating profitability during those years. In 2019, the operating ROA was 8.74%, indicating a modest increase in operating efficiency compared to 2021 but somewhat lower than the latest figures.
Overall, the upward trend in operating ROA from 2021 to 2023 shows an improvement in Martin Marietta Materials, Inc.'s ability to generate operating profits relative to its asset base. This suggests that the company is becoming more effective in utilizing its assets to generate profits in its operations, which can be a positive sign of financial health and operational efficiency.
Peer comparison
Dec 31, 2023