Vulcan Materials Company (VMC)

Short-term

Turnover ratios

Vulcan Materials Company's Inventory Turnover ratio has been relatively stable over the years, hovering around 8 times per year. This indicates that the company is efficiently managing its inventory levels, with a slight increase in efficiency seen in 2022 and 2023.

The Receivables Turnover ratio data is not available, suggesting that information on how quickly the company collects its accounts receivable is not provided. This can make it challenging to assess the efficiency of Vulcan Materials Company in collecting sales revenue from its customers.

Similarly, the Payables Turnover ratio data is also missing, which could have shed light on how efficiently the company is managing its payments to suppliers.

On the other hand, the Working Capital Turnover ratio has shown some fluctuations but generally indicates an increasing trend from 2020 to 2022, suggesting that Vulcan Materials Company is utilizing its working capital more effectively over time. However, there was a slight decrease in efficiency in 2023, although it picked up again in 2024.

Overall, while the Inventory Turnover and Working Capital Turnover ratios provide insights into Vulcan Materials Company's operational efficiency, the lack of data for Receivables and Payables turnover ratios limits a comprehensive analysis of the company's overall financial performance.

---

Average number of days

Based on the provided data, Vulcan Materials Company's Days of Inventory on Hand (DOH) has shown fluctuation over the years, ranging from 36.73 days at December 31, 2022 to 45.93 days at December 31, 2024. This indicates that the company, on average, held its inventory for around 37 to 46 days before selling it during the given years.

However, there is no specific data available for Days of Sales Outstanding (DSO) and Number of Days of Payables for the years provided. DSO measures how long it takes for a company to collect its accounts receivable, while the Number of Days of Payables measures how long it takes a company to pay its suppliers.

In the absence of data for DSO and Number of Days of Payables, it is challenging to assess Vulcan Materials Company's efficiency in collecting receivables and managing payables. It is essential for the company to track and manage these ratios effectively to ensure an optimal cash conversion cycle and maintain healthy liquidity levels.

---

Long-term

The fixed asset turnover ratio for Vulcan Materials Company has exhibited some fluctuations over the years. In 2020, the company had a fixed asset turnover of 1.10, indicating that it generated $1.10 in revenue for every $1 of fixed assets. This ratio declined to 0.89 in 2021 before recovering to 1.10 in 2022. However, no data is available for 2023 and 2024.

On the other hand, the total asset turnover ratio, which measures how efficiently the company is utilizing all its assets to generate revenue, has also shown some variability. In 2020 and 2021, the total asset turnover stood at 0.42 and 0.41, respectively, indicating that the company generated 41-42 cents in revenue for every dollar of total assets. This ratio improved to 0.51 in 2022, and further increased to 0.53 in 2023, before declining slightly to 0.43 in 2024.

Overall, the fixed asset turnover suggests that Vulcan Materials Company's utilization of its fixed assets to generate sales has fluctuated, potentially indicating changes in asset efficiency or revenue generation strategies. Meanwhile, the total asset turnover ratio reflects fluctuations in the company's overall asset efficiency and revenue generation capabilities over the years.