Martin Marietta Materials Inc (MLM)

Debt-to-equity 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-equity ratio		0.49	0.61	0.78	0.45	0.45

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,945,600K ÷ $8,033,200K
= 0.49

The debt-to-equity ratio of Martin Marietta Materials, Inc. has shown some fluctuation over the past five years. It decreased from 0.52 in 2019 to 0.45 in 2020, indicating a lower level of debt relative to equity in 2020. However, in the subsequent years, the ratio increased to 0.78 in 2021, then decreased to 0.70 in 2022, and further dropped to 0.54 in 2023.

The decreasing trend from 2021 to 2023 suggests that the company is relying less on debt to finance its operations compared to its equity. This could indicate a more conservative approach to capital structure and financial risk management. However, it is essential to assess the company's overall financial health, profitability, and growth prospects alongside the debt-to-equity ratio to get a comprehensive understanding of its financial position.