Martin Marietta Materials Inc (MLM)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	3,945,600	3,944,700	4,343,100	4,342,000	4,340,900	4,339,900	5,044,300	5,102,300	5,100,800	5,099,400	2,627,200	2,626,500	2,625,800	2,625,200	2,624,500	2,623,900	2,433,600	2,732,820	2,732,020	2,801,230
Total stockholders’ equity	US$ in thousands	8,033,200	7,802,500	7,421,100	7,175,000	7,170,500	6,935,700	6,770,000	6,428,900	6,535,300	6,355,900	6,125,900	5,923,900	5,890,700	5,756,400	5,491,100	5,296,900	5,350,800	5,301,970	5,094,850	4,972,470
Debt-to-capital ratio		0.33	0.34	0.37	0.38	0.38	0.38	0.43	0.44	0.44	0.45	0.30	0.31	0.31	0.31	0.32	0.33	0.31	0.34	0.35	0.36

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 a fluctuating trend over the past eight quarters, ranging from 0.35 to 0.44. The ratio indicates the proportion of the company's capital structure that is financed by debt. A decreasing ratio typically suggests a lower reliance on debt financing, whereas an increasing ratio may indicate higher debt levels relative to capital.

In this case, the debt-to-capital ratio has been on a slight downward trend from 0.44 in Q1 2022 to 0.35 in Q4 2023. This downward trend could be viewed positively as it may indicate a reduction in the company's debt burden relative to its total capital. However, it is essential to consider other factors alongside this ratio to assess the overall financial health and risk profile of the company. Further analysis of the company's debt levels, profitability, liquidity, and growth prospects would provide a more holistic view of its financial position.