Martin Marietta Materials Inc (MLM)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,995,000 | 1,168,900 | 866,800 | 702,500 | 721,000 |
| Total stockholders’ equity | US$ in thousands | 9,453,000 | 8,033,200 | 7,172,800 | 6,537,600 | 5,893,300 |
| ROE | 21.10% | 14.55% | 12.08% | 10.75% | 12.23% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,995,000K ÷ $9,453,000K
= 21.10%
Martin Marietta Materials Inc's return on equity (ROE) has fluctuated over the years based on the provided data.
As of December 31, 2020, the ROE stood at 12.23%, indicating that for every dollar of shareholders' equity, the company generated a return of 12.23%. The ROE decreased to 10.75% by December 31, 2021, suggesting a decrease in profitability and efficiency in utilizing shareholders' funds.
However, the company showed improvement in its ROE in the subsequent years. By December 31, 2022, the ROE increased to 12.08%, indicating a rebound in the company's profitability and efficiency in generating returns for shareholders. This positive trend continued in the following years, with the ROE reaching 14.55% as of December 31, 2023, and further increasing to 21.10% by December 31, 2024.
The significant improvement in ROE in 2024 suggests that Martin Marietta Materials Inc has been more effective in utilizing shareholders' equity to generate profits, potentially through improved operational efficiency, better asset utilization, or strategic decision-making.
Overall, the fluctuation in ROE over the years underscores the importance of monitoring financial performance trends to assess the company's ability to generate returns for its shareholders.
Peer comparison
Dec 31, 2024