Martin Marietta Materials Inc (MLM)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,945,600 | 4,340,900 | 5,100,800 | 2,625,800 | 2,433,600 |
| Total assets | US$ in thousands | 15,124,900 | 14,993,600 | 14,393,000 | 10,580,800 | 10,131,600 |
| Debt-to-assets ratio | 0.26 | 0.29 | 0.35 | 0.25 | 0.24 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,945,600K ÷ $15,124,900K
= 0.26
The debt-to-assets ratio of Martin Marietta Materials, Inc. has shown some fluctuation over the past five years. The ratio decreased from 0.27 in 2019 to 0.25 in 2020, indicating a lower proportion of debt relative to total assets in 2020. However, the ratio increased in the following years, reaching 0.35 in 2021, then slightly decreasing to 0.34 in 2022, and further declining to 0.29 in 2023.
A lower debt-to-assets ratio suggests that the company relies less on debt financing to fund its operations and investment activities, which can be seen as a favorable financial position as it indicates lower financial risk. In contrast, a higher debt-to-assets ratio indicates a greater reliance on debt, which could potentially increase the company's financial risk and interest expense.
Overall, the fluctuation in Martin Marietta Materials, Inc.'s debt-to-assets ratio over the past five years may reflect changes in the company's capital structure and financing decisions. It is essential for investors and stakeholders to monitor this ratio to assess the company's leverage and financial stability.
Peer comparison
Dec 31, 2023