Martin Marietta Materials Inc (MLM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.92 | 1.88 | 2.09 | 2.20 | 1.80 |
Martin Marietta Materials Inc's solvency ratios indicate a strong financial position with consistently low debt levels relative to assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00% for the years 2020 through 2024, which suggests that the company is not heavily reliant on debt to fund its operations and growth.
The Financial leverage ratio, which measures the extent to which the company relies on debt financing, shows a slight fluctuation over the years but remains at manageable levels. The ratio ranged from 1.80 in 2020 to 2.20 in 2021 and then declined to 1.88 in 2023 before increasing slightly to 1.92 in 2024. These figures indicate that the company's financial leverage has been relatively stable and well-controlled over the period.
Overall, Martin Marietta Materials Inc's solvency ratios reflect a conservative financing strategy with limited reliance on debt, which is a positive sign for the company's long-term financial stability and ability to weather economic downturns.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 16.36 | 10.00 | 6.43 | 7.00 | 8.53 |
The interest coverage ratio for Martin Marietta Materials Inc has shown a fluctuating trend over the past five years. As of December 31, 2020, the ratio stood at 8.53, indicating that the company generated 8.53 times the amount of operating income to cover its interest expenses.
However, this ratio declined to 7.00 by December 31, 2021, and further decreased to 6.43 by December 31, 2022. These declining trends suggest that the company may be experiencing challenges in meeting its interest obligations from its operating profits.
There was a significant improvement in the interest coverage ratio by December 31, 2023, reaching 10.00, and notably surged to 16.36 by December 31, 2024. These improvements indicate that the company's profitability and earnings have strengthened sufficiently to cover its interest payments comfortably.
In conclusion, Martin Marietta Materials Inc's interest coverage ratio has shown fluctuations over the years, and while there were periods of decline, the recent significant improvements suggest a stronger ability to meet interest obligations from operating income.