Martin Marietta Materials Inc (MLM)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,168,900	866,800	702,500	721,000	611,900
Total assets	US$ in thousands	15,124,900	14,993,600	14,393,000	10,580,800	10,131,600
ROA		7.73%	5.78%	4.88%	6.81%	6.04%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $1,168,900K ÷ $15,124,900K
= 7.73%

Based on the provided data, Martin Marietta Materials, Inc.'s return on assets (ROA) has been fluctuating over the past five years. In 2023, the company's ROA improved to 7.73% compared to 5.78% in 2022. This indicates that the company generated $0.0773 in net income for every dollar of assets it holds.

The ROA of Martin Marietta Materials, Inc. in 2023 was the highest in the given period, showing an efficient utilization of its assets to generate profits. This increase in ROA could be attributed to improved operational efficiency, better asset management, or higher profitability.

Comparing the ROA to previous years, the company's performance in 2023 was notably better than in 2021 and 2019 when it reported ROAs of 4.88% and 6.03%, respectively. However, it was slightly lower than the 6.81% recorded in 2020.

Overall, Martin Marietta Materials, Inc.'s increasing ROA trend in recent years suggests that the company has been effectively managing its assets to generate profits, which is a positive indicator of its financial health and operational performance.