Martin Marietta Materials (Martin Marietta Materials) Operating Income : $1,608 Mil (TTM As of Dec. 2023)

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What is Martin Marietta Materials Operating Income?

Martin Marietta Materials's Operating Income for the three months ended in Dec. 2023 was $378 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $1,608 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Martin Marietta Materials's Operating Income for the three months ended in Dec. 2023 was $378 Mil. Martin Marietta Materials's Revenue for the three months ended in Dec. 2023 was $1,608 Mil. Therefore, Martin Marietta Materials's Operating Margin % for the quarter that ended in Dec. 2023 was 23.49%.

Good Sign:

Martin Marietta Materials Inc operating margin is expanding. Margin expansion is usually a good sign.

Martin Marietta Materials's 5-Year average Growth Rate for Operating Margin % was 5.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Martin Marietta Materials's annualized ROC % for the quarter that ended in Dec. 2023 was 9.38%. Martin Marietta Materials's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 18.36%.

Martin Marietta Materials Operating Income Historical Data

The historical data trend for Martin Marietta Materials's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Martin Marietta Materials Operating Income Chart

Martin Marietta Materials Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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885.40

1,006.70

1,031.70

1,215.80

1,608.20

Martin Marietta Materials Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															265.30	196.90	463.70	569.90	377.80

Martin Marietta Materials Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,608 Mil.

Martin Marietta Materials (NYSE:MLM) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Martin Marietta Materials's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	1511.2 * ( 1 - 16.07% )	/	( (13726.6	+	13313.7)	/ 2 )
=	1268.35016	/	13520.15
=	9.38 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	14917.8	-	543.6	-	( 647.6	-	max(0, 1141.1	-	2817.4	+	647.6	))
=	13726.6

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	15124.9	-	539.4	-	( 1271.8	-	max(0, 1170.2	-	3918.9	+	1271.8	))
=	13313.7

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Martin Marietta Materials's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1532	/	( ( (6727.6 + max(1479.7, 0))	+	(6557.5 + max(1923.2, 0)) )	/	2 )
=	1532	/	( ( 8207.3	+	8480.7 )	/	2 )
=	1532	/	8344
=	18.36 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1047.5	+	993.1	+	129.2)	-	(543.6	+	0	+	146.5)
=	1479.7

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(746.7	+	988.6	+	905.2)	-	(539.4	+	0	+	177.9)
=	1923.2

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Martin Marietta Materials's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	377.8	/	1608.2
	=	23.49 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Martin Marietta Materials Operating Income Related Terms

Thank you for viewing the detailed overview of Martin Marietta Materials's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Martin Marietta Materials (Martin Marietta Materials) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Martin Marietta Materials Inc (NYSE:MLM) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

MLM:Mexico MMX:Germany M1LM34:Brazil

Address

4123 Parklake Avenue, Raleigh, NC, USA, 27612

Website

https://www.martinmarietta.com

Martin Marietta Materials is one of the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). In 2022, Martin Marietta sold 207 million tons of aggregates. Martin Marietta's most important markets include Texas, Colorado, North Carolina, Georgia, and Florida, accounting for most of its sales. The company also produces cement in Texas and uses its aggregates in its asphalt and ready-mixed concrete businesses. Martin's magnesia specialties business produces magnesia-based chemical products and dolomitic lime.

Executives

Craig M Latorre	officer: Sr. VP, CHRO	2710 WYCLIFF ROAD, RALEIGH NC 27607
Kelly Gean Bennett	officer: Sr VP, Human Resources	4123 PARKLAKE AVENUE, RALEIGH NC 27612
Sue W Cole	director	C/O US TRUST CO OF NORTH CAROLINA, 301 N. ELM ST., GREENSBORO NC 27401
Oliver W Brooks	officer: SVP - Enterprise Excellence	4123 PARKLAKE AVENUE, RALEIGH NC 27612
John P Mohr	officer: SVP - CIO	2710 WYCLIFF ROAD, RALEIGH NC 27607
Michael J Petro	officer: SVP - Strategy and Development	4123 PARKLAKE AVENUE, RALEIGH NC 27612
C Howard Nye	officer: Pres & Chief Operating Officer	2710 WYCLIFF ROAD, RALEIGH NC 27607
Roselyn R Bar	officer: VP, Gen. Counsel and Secy	C/O MARTIN MARIETTA MATERIALS INC, 2710 WYCLIFF ROAD, RALEIGH NC 27607
Anthony R Foxx	director	2710 WYCLIFF ROAD, RALEIGH NC 27607
Zelnak Stephen P Jr	director, officer: Chairman, President and CEO	MARTIN MARIETTA MATERIALS INC, 2710 WYCLIFF ROAD, RALEIGH NC 27607
David C Wajsgras	director	870 WINTER STREET, WALTHAM MA 02451
John J Koraleski	director	MARTIN MARIETTA, 2710 WYCLIFF ROAD, RALEIGH NC 27607
Daniel L. Grant	officer: SVP - Strategy and Development	2710 WYCLIFF ROAD, RALEIGH NC 27607
Thomas Pike	director	C/O ACCENTURE, 161 N. CLARK STREET, 23RD FLOOR, CHICAGO IL 60601
Laree E Perez	director	1111 LOUISIANA STREET, HOUSTON TX 77002