Martin Marietta Materials Inc (MLM)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,124,900 | 14,993,600 | 14,393,000 | 10,580,800 | 10,131,600 |
| Total stockholders’ equity | US$ in thousands | 8,033,200 | 7,170,500 | 6,535,300 | 5,890,700 | 5,350,800 |
| Financial leverage ratio | 1.88 | 2.09 | 2.20 | 1.80 | 1.89 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,124,900K ÷ $8,033,200K
= 1.88
The financial leverage ratio of Martin Marietta Materials, Inc. has fluctuated over the past five years, ranging from 1.80 to 2.20. The trend indicates some variability in the company's capital structure during this period. In 2021, the financial leverage ratio peaked at 2.20, suggesting a relatively higher level of debt utilization to finance the company's operations and investments. This higher leverage may have been driven by strategic decisions to take on additional debt for expansion or other initiatives.
However, in 2022 and 2023, we observe a slight decline in the financial leverage ratio, indicating a potential reduction in the company's reliance on debt financing or an increase in equity financing. A lower financial leverage ratio generally indicates a lower level of financial risk for the company, as it suggests a more conservative capital structure with less debt compared to equity.
Overall, the fluctuation in Martin Marietta Materials, Inc.'s financial leverage ratio indicates a dynamic approach to capital structure management, with the company adapting its debt-to-equity mix in response to changing business conditions and financial strategies. It is important for stakeholders to closely monitor these trends to assess the company's risk profile and financial health.
Peer comparison
Dec 31, 2023