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.