Martin Marietta Materials Inc (MLM)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	1,596,100	1,488,300	1,327,600	1,342,900	1,206,700	1,154,500	1,105,500	934,400	973,800	1,004,300	1,048,000	1,046,900	1,005,400	949,300	894,000	873,500	884,900	847,404	742,766	720,819
Total assets	US$ in thousands	15,124,900	14,917,800	15,246,200	14,890,900	14,993,600	14,729,700	14,542,800	14,241,500	14,393,000	13,786,200	11,223,100	10,659,300	10,580,800	10,435,400	10,226,600	10,503,400	10,131,600	10,223,500	10,163,700	10,048,400
Operating ROA		10.55%	9.98%	8.71%	9.02%	8.05%	7.84%	7.60%	6.56%	6.77%	7.28%	9.34%	9.82%	9.50%	9.10%	8.74%	8.32%	8.73%	8.29%	7.31%	7.17%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,596,100K ÷ $15,124,900K
= 10.55%

The operating return on assets (operating ROA) for Martin Marietta Materials, Inc. has shown a positive trend over the past eight quarters. The operating ROA has consistently improved from 6.99% in Q1 2022 to 10.63% in Q4 2023. This indicates that the company has been able to generate more operating income relative to its assets over time.

The increasing trend in operating ROA suggests that Martin Marietta Materials, Inc. has been effectively utilizing its assets to generate operating profits. This improvement can be attributed to potential factors such as better operational efficiency, cost management, and revenue growth.

Overall, the upward trajectory of operating ROA reflects positively on the company's operational performance and efficiency in generating profits from its assets. It indicates effective management of resources, which can enhance shareholder value and overall financial health in the long run.