Martin Marietta Materials Inc (MLM)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,765,000 | 1,652,200 | 1,086,600 | 998,200 | 1,007,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,453,000 | 8,033,200 | 7,172,800 | 6,537,600 | 5,893,300 |
| Return on total capital | 29.25% | 20.57% | 15.15% | 15.27% | 17.09% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,765,000K ÷ ($—K + $9,453,000K)
= 29.25%
Martin Marietta Materials Inc's return on total capital has fluctuated over the past five years. It stood at 17.09% on December 31, 2020, experienced a slight decline to 15.27% by December 31, 2021, and dipped further to 15.15% by December 31, 2022. However, there was a notable improvement in performance by December 31, 2023, where the return on total capital surged to 20.57%. The most significant increase was observed by December 31, 2024, reaching 29.25%.
The upward trend in return on total capital from 2023 to 2024 signifies improved efficiency in generating returns relative to the total capital employed. This increase may indicate enhanced operational performance, better allocation of resources, or successful investment decisions within the company.
Overall, the recent spike in return on total capital suggests that Martin Marietta Materials Inc has been able to leverage its capital more effectively to generate higher returns, which could be a positive indicator of the company's financial health and potential for future growth. It would be important to continue monitoring this ratio to assess the company's ongoing financial performance and efficiency in capital utilization.
Peer comparison
Dec 31, 2024