Martin Marietta Materials Inc (MLM)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,626,700 | 1,270,600 | 998,400 | 1,007,300 | 877,500 |
| Long-term debt | US$ in thousands | 3,945,600 | 4,340,900 | 5,100,800 | 2,625,800 | 2,433,600 |
| Total stockholders’ equity | US$ in thousands | 8,033,200 | 7,170,500 | 6,535,300 | 5,890,700 | 5,350,800 |
| Return on total capital | 13.58% | 11.04% | 8.58% | 11.83% | 11.27% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,626,700K ÷ ($3,945,600K + $8,033,200K)
= 13.58%
Martin Marietta Materials, Inc.'s return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital increased to 12.99% from 9.96% in 2022 and 8.87% in 2021. This improvement indicates better utilization of the company's total capital to generate profits. However, in 2020, the return on total capital was slightly higher at 11.82%, while in 2019, it was 10.90%. Overall, the company's return on total capital has been relatively stable, with the recent increase showing positive momentum in efficiently generating returns on the total capital employed.
Peer comparison
Dec 31, 2023