Martin Marietta Materials Inc (MLM)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 8,033,200 | 7,170,500 | 6,535,300 | 5,890,700 | 5,350,800 |
| Debt-to-capital ratio | 0.33 | 0.38 | 0.44 | 0.31 | 0.31 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,945,600K ÷ ($3,945,600K + $8,033,200K)
= 0.33
The debt-to-capital ratio of Martin Marietta Materials, Inc. has shown fluctuations over the five-year period from 2019 to 2023. The ratio decreased from 0.34 in 2019 to 0.31 in 2020, indicating a reduction in the proportion of debt relative to total capital. However, this trend reversed in the subsequent years, with the ratio increasing to 0.44 in 2021 before declining slightly to 0.41 in 2022 and further to 0.35 in 2023.
These fluctuations suggest that Martin Marietta Materials, Inc. has been actively managing its capital structure, alternating between higher and lower levels of debt relative to total capital. A lower debt-to-capital ratio may imply lower financial risk and greater financial stability, while a higher ratio could indicate increased leverage and potential financial risk. It is essential to assess the company's overall financial position, debt levels, and strategic initiatives to fully understand the implications of these changes in the debt-to-capital ratio over time.
Peer comparison
Dec 31, 2023