Martin Marietta Materials Inc (MLM)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,626,700 | 1,270,600 | 998,400 | 1,007,300 | 877,500 |
| Interest expense | US$ in thousands | 165,300 | 169,000 | 142,700 | 118,100 | 129,300 |
| Interest coverage | 9.84 | 7.52 | 7.00 | 8.53 | 6.79 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,626,700K ÷ $165,300K
= 9.84
The interest coverage ratio of Martin Marietta Materials, Inc. has shown a generally positive trend over the past five years, indicating the company's ability to meet its interest obligations comfortably. The ratio has improved from 6.85 in 2019 to 9.73 in 2023, which suggests that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses nearly 10 times. This demonstrates strong financial health and a reduced risk of default on interest payments. The consistent increase in the interest coverage ratio reflects the company's improved profitability and efficiency in managing its debt commitments over the years. The higher interest coverage ratio also signifies a decreased financial risk, making Martin Marietta Materials, Inc. less vulnerable to potential challenges related to servicing its debt.
Peer comparison
Dec 31, 2023