Martin Marietta Materials Inc (MLM)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 18,170,000 | 16,469,000 | 16,333,000 | 16,240,000 | 15,479,700 | 14,917,800 | 15,246,200 | 14,890,900 | 14,993,600 | 14,729,700 | 14,542,800 | 14,241,500 | 14,393,000 | 13,786,200 | 11,223,100 | 10,659,300 | 10,580,800 | 10,435,400 | 10,226,600 | 10,503,400 |
| Total stockholders’ equity | US$ in thousands | 9,456,000 | 9,169,000 | 8,838,000 | 8,875,000 | 8,033,200 | 7,804,800 | 7,423,400 | 7,177,500 | 7,172,800 | 6,935,700 | 6,770,000 | 6,428,900 | 6,537,600 | 6,355,900 | 6,125,900 | 5,926,700 | 5,893,300 | 5,756,400 | 5,491,100 | 5,296,900 |
| Financial leverage ratio | 1.92 | 1.80 | 1.85 | 1.83 | 1.93 | 1.91 | 2.05 | 2.07 | 2.09 | 2.12 | 2.15 | 2.22 | 2.20 | 2.17 | 1.83 | 1.80 | 1.80 | 1.81 | 1.86 | 1.98 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,170,000K ÷ $9,456,000K
= 1.92
The financial leverage ratio of Martin Marietta Materials Inc has shown some fluctuations over the past few years. The ratio has been on a generally increasing trend from the beginning of 2021 until the second quarter of 2022, peaking at 2.22. This indicates that the company's reliance on debt to finance its operations and growth increased during this period.
However, from the third quarter of 2022 onwards, the financial leverage ratio started to decline gradually, reaching 1.80 by the end of 2024. This suggests that the company may have been reducing its debt levels or increasing its equity base during this period, leading to a lower overall financial leverage ratio.
Overall, although there were fluctuations in the ratio, Martin Marietta Materials Inc maintained a reasonable level of financial leverage throughout the period under review. It is important for the company to strike a balance between using debt to fuel growth and managing the associated risks to ensure long-term financial stability.
Peer comparison
Dec 31, 2024