Martin Marietta Materials Inc (MLM)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,415,000 | 1,373,400 | 1,458,300 | 1,536,300 | 1,636,500 | 1,546,700 | 1,375,700 | 1,231,700 | 1,085,800 | 1,059,900 | 1,020,000 | 991,500 | 1,031,000 | 1,018,600 | 982,600 | 985,100 | 939,400 | 893,106 | 906,330 | 879,030 |
| Interest expense (ttm) | US$ in thousands | 168,000 | 158,200 | 161,000 | 163,200 | 165,400 | 167,800 | 169,800 | 170,700 | 169,000 | 169,200 | 170,700 | 155,700 | 142,600 | 128,200 | 112,600 | 115,700 | 118,100 | 120,365 | 124,101 | 126,198 |
| Interest coverage | 8.42 | 8.68 | 9.06 | 9.41 | 9.89 | 9.22 | 8.10 | 7.22 | 6.42 | 6.26 | 5.98 | 6.37 | 7.23 | 7.95 | 8.73 | 8.51 | 7.95 | 7.42 | 7.30 | 6.97 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,415,000K ÷ $168,000K
= 8.42
The interest coverage ratio of Martin Marietta Materials Inc has displayed varying trends over the reporting periods provided. The ratio indicates the company's ability to meet its interest payments on outstanding debt obligations.
From March 31, 2020, to June 30, 2021, the interest coverage ratio steadily increased from 6.97 to 8.73, indicating an improved ability to cover its interest expenses with operating income. This upward trend suggests the company's profitability was increasing relative to its interest obligations during this period.
However, from September 30, 2021, to June 30, 2022, the interest coverage ratio declined from 7.95 to 5.98, indicating a potential weakening in the company's ability to cover its interest payments with operating income. This decline may signal increased financial risk or a decrease in profitability.
Subsequently, there was a slight recovery in the interest coverage ratio up to December 31, 2022, before a more significant increase up to March 31, 2024, where the ratio reached a peak of 9.89. This upward trend from 6.26 to 9.89 suggests a strengthening ability to cover interest expenses with operating income during this period.
Overall, the interest coverage ratio of Martin Marietta Materials Inc has demonstrated fluctuations over the period analyzed, with both improvements and declines in the company's ability to meet its interest obligations with operating income. Investors and creditors may consider the fluctuating trend in this ratio when evaluating the company's financial health and risk profile.
Peer comparison
Dec 31, 2024