Martin Marietta Materials Inc (MLM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,124,900 | 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 | 10,131,600 | 10,223,500 | 10,163,700 | 10,048,400 |
| 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 |
| Financial leverage ratio | 1.88 | 1.91 | 2.05 | 2.08 | 2.09 | 2.12 | 2.15 | 2.22 | 2.20 | 2.17 | 1.83 | 1.80 | 1.80 | 1.81 | 1.86 | 1.98 | 1.89 | 1.93 | 1.99 | 2.02 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,124,900K ÷ $8,033,200K
= 1.88
The financial leverage ratio for Martin Marietta Materials, Inc. has been fluctuating over the past eight quarters. The trend shows an increasing level of leverage from Q4 2022 to Q1 2023, with the ratio peaking at 2.22. However, from Q1 2023 to Q2 2023, there is a slight decrease in the financial leverage ratio which then increases again in Q3 2023. This pattern suggests that the company's reliance on debt to finance its operations has been varying.
A financial leverage ratio above 1 indicates that the company is using more debt than equity to finance its assets. Therefore, the trend observed in Martin Marietta Materials, Inc.'s financial leverage ratio signifies a potential increase in financial risk due to higher levels of debt in its capital structure. It will be essential for stakeholders to monitor this trend closely to ensure that the company's leverage remains at a sustainable level and does not pose a threat to its financial stability and long-term viability.
Peer comparison
Dec 31, 2023