Martin Marietta Materials Inc (MLM)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	8,033,200	7,170,500	6,535,300	5,890,700	5,350,800
ROE		14.55%	12.09%	10.75%	12.24%	11.44%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,168,900K ÷ $8,033,200K
= 14.55%

Over the past five years, Martin Marietta Materials, Inc.'s return on equity (ROE) has exhibited a generally positive trend, increasing from 11.42% in 2019 to 14.56% in 2023. This indicates that the company has been effectively utilizing its shareholders' equity to generate profits, providing a higher return to its equity investors.

The ROE of 14.56% in 2023 suggests that for every dollar of equity invested by shareholders, the company generated a profit of approximately 14.56 cents. This improvement in ROE from 2022 to 2023 indicates a more efficient utilization of equity in generating profits, which is a positive sign for investors and a reflection of the company's improved financial performance.

Overall, the increasing trend in ROE over the years demonstrates Martin Marietta Materials' ability to generate higher returns on the investment made by shareholders, indicating effective management of the company's assets and liabilities to create value for its owners.