Vulcan Materials Company (VMC)

Short-term

Turnover ratios

The inventory turnover ratio for Vulcan Materials Co has been relatively stable over the past five years, ranging from 7.97 to 9.94 times. This indicates that the company is efficient in managing its inventory levels and converting them into sales.

The receivables turnover ratio has shown some fluctuations, with a significant increase in 2022 followed by a decrease in 2023. Generally, the company collects its accounts receivable around 6 to 9 times a year, demonstrating effective management of credit sales and collection efforts.

The payables turnover ratio data is unavailable, which limits our ability to assess the efficiency of the company in paying its suppliers.

The working capital turnover ratio has varied over the years, with a notable increase in 2022. This ratio indicates how well the company generates sales relative to its working capital levels. A higher ratio suggests efficient utilization of working capital in generating revenue.

Overall, Vulcan Materials Co appears to be performing well in terms of managing its inventory, accounts receivable, and working capital to drive sales and improve operational efficiency. However, further analysis of payables turnover would provide a more comprehensive assessment of the company's overall liquidity and efficiency in managing its working capital cycle.

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Average number of days

The Days of Inventory on Hand (DOH) ratio for Vulcan Materials Co has fluctuated over the past five years, ranging from 36.73 days to 45.80 days. In 2023, the company was able to turn over its inventory approximately every 38.52 days, indicating efficient management of inventory levels compared to previous years.

The Days of Sales Outstanding (DSO) ratio also varied during the same period, with values ranging from 41.73 days to 55.14 days. In 2023, Vulcan Materials Co collected its accounts receivable in about 41.73 days, showing a decrease in the collection time compared to 2022 and 2021.

Unfortunately, there is insufficient data provided for the Number of Days of Payables ratio to perform a detailed analysis of Vulcan Materials Co's payment terms and management of accounts payable over the five-year period.

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Long-term

Vulcan Materials Co's long-term activity ratios reflect how efficiently the company is utilizing its long-term assets to generate revenue.

1. Fixed Asset Turnover:
- Vulcan Materials Co's fixed asset turnover has been relatively stable over the past five years, ranging from 1.00 to 1.25.
- This ratio indicates that, on average, the company generates $1.25 in revenue for every $1 invested in fixed assets.
- An increasing trend in fixed asset turnover generally indicates improving efficiency in utilizing fixed assets to generate sales.

2. Total Asset Turnover:
- Vulcan Materials Co's total asset turnover has also shown consistency over the years, with values ranging from 0.41 to 0.53.
- This ratio suggests that the company generated $0.53 in revenue for each $1 of total assets in 2023.
- A higher total asset turnover ratio is usually preferred as it demonstrates a better utilization of assets to generate sales.

Overall, Vulcan Materials Co's long-term activity ratios indicate a solid utilization of assets to generate revenue, with the fixed asset turnover showing a slightly stronger trend compared to the total asset turnover. This suggests that the company is effectively managing and utilizing its long-term assets in its operations.