Martin Marietta Materials Inc (MLM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,707,000 | 1,596,000 | 1,206,700 | 973,800 | 1,005,400 |
| Total assets | US$ in thousands | 18,170,000 | 15,124,900 | 14,993,600 | 14,393,000 | 10,580,800 |
| Operating ROA | 14.90% | 10.55% | 8.05% | 6.77% | 9.50% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,707,000K ÷ $18,170,000K
= 14.90%
Martin Marietta Materials Inc's operating return on assets (operating ROA) has fluctuated over the past five years. It stood at 9.50% as of December 31, 2020 and decreased to 6.77% by December 31, 2021. However, the company's performance improved in the subsequent years, reaching 8.05% by December 31, 2022, 10.55% by December 31, 2023, and significantly increased to 14.90% by December 31, 2024.
The upward trend in operating ROA from 2022 to 2024 indicates that Martin Marietta Materials Inc has been more effective in generating operating income from its assets. The company has likely improved its operational efficiency, asset utilization, or cost management strategies during this period, leading to higher returns relative to its asset base.
Overall, the increasing trend in operating ROA reflects positively on Martin Marietta Materials Inc's ability to generate profits from its operational activities in relation to its asset investments. Investors and stakeholders may view this improvement favorably as it signals enhanced financial performance and management effectiveness.
Peer comparison
Dec 31, 2024