Martin Marietta Materials Inc (MLM)

Solvency ratios

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
Debt-to-assets ratio 0.26 0.26 0.28 0.29 0.29 0.29 0.35 0.36 0.35 0.37 0.23 0.25 0.25 0.25 0.26 0.25 0.24 0.27 0.27 0.28
Debt-to-capital ratio 0.33 0.34 0.37 0.38 0.38 0.38 0.43 0.44 0.44 0.45 0.30 0.31 0.31 0.31 0.32 0.33 0.31 0.34 0.35 0.36
Debt-to-equity ratio 0.49 0.51 0.59 0.61 0.61 0.63 0.75 0.79 0.78 0.80 0.43 0.44 0.45 0.46 0.48 0.50 0.45 0.52 0.54 0.56
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

The solvency ratios of Martin Marietta Materials, Inc. indicate the company's ability to meet its long-term financial obligations and manage its debt levels effectively.

The Debt-to-Assets ratio has been relatively stable over the past eight quarters, ranging from 0.29 to 0.36. This indicates that, on average, only around 29% to 36% of the company's assets are financed by debt.

The Debt-to-Capital ratio and the Debt-to-Equity ratio have shown a slight upward trend over the same period, increasing from 0.35 to 0.44 and from 0.54 to 0.79, respectively. This suggests that the company has been relying more on debt to finance its operations and growth, which could potentially increase its financial risk.

The Financial Leverage ratio has also shown an increasing trend, rising from 1.88 to 2.22 over the past two years. This indicates that the proportion of the company's assets that are financed by debt has been steadily increasing, which can amplify both returns and risks for shareholders.

Overall, while Martin Marietta Materials, Inc. has maintained a relatively low Debt-to-Assets ratio, the increasing trend in the Debt-to-Capital, Debt-to-Equity, and Financial Leverage ratios suggests a higher reliance on debt financing. The company should carefully monitor its debt levels to ensure sustainable growth and financial stability in the long run.

Coverage ratios

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
Interest coverage 9.83 9.06 8.07 8.21 7.52 7.15 6.77 6.15 7.00 7.99 9.47 9.16 8.53 7.96 7.26 6.84 6.79 6.36 5.46 5.46

To analyze Martin Marietta Materials, Inc.'s interest coverage, we look at the trend in the ratio over the past eight quarters. Interest coverage measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.

From the data provided, we observe that the interest coverage ratio has been consistently above 6 over the past two years, indicating a strong ability to cover interest expenses. The company's interest coverage ratio has shown a generally increasing trend from Q1 2022 to Q4 2023, demonstrating an improvement in the company's ability to cover interest payments.

The interest coverage ratios for Q4 2023 (9.73) and Q3 2023 (8.91) are notably higher compared to the ratios in earlier quarters. This suggests that the company's earnings before interest and taxes (EBIT) have been sufficient to cover interest expenses comfortably in the most recent quarters.

Overall, Martin Marietta Materials, Inc. has exhibited a consistent and improving ability to cover its interest payments, reflecting a strong financial position in terms of debt repayment capacity. Investors and creditors may view this positively as it indicates the company's ability to manage its debt obligations effectively.