Vulcan Materials Company (VMC)

Activity ratios

Short-term

Turnover 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
Inventory turnover 9.48 10.26 9.85 9.96 9.94 10.39 9.84 8.79 8.02 7.41 8.00 8.08 7.97 7.90 8.16 7.89 8.01 8.36 7.87 7.90
Receivables turnover — 6.48 6.53 7.61 8.65 5.93 5.95 6.56 7.09 5.46 7.15 8.22 9.47 7.56 7.15 8.34 9.26 6.66 6.67 8.07
Payables turnover — — — — — — — — — — — — — — — — — — — —
Working capital turnover 4.51 4.18 6.06 7.17 7.74 7.41 7.60 7.83 5.99 6.08 3.07 3.42 3.95 4.07 5.02 6.22 5.84 6.12 7.87 10.67

Based on the data provided for Vulcan Materials Co, we can analyze the activity ratios as follows:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory. Vulcan Materials Co's inventory turnover has been relatively stable over the quarters, ranging between 9.48 and 10.39. This indicates that the company is able to sell and replace its inventory multiple times during the year, suggesting effective inventory management.

2. Receivables Turnover: The receivables turnover ratio reflects how quickly a company collects payments from its customers. Vulcan Materials Co's receivables turnover has varied, with a low of 5.93 in Q3 2022 to a high of 8.75 in Q4 2023. Generally, a higher turnover ratio indicates a shorter collection period, which is favorable for cash flow management.

3. Payables Turnover: Unfortunately, the data provided does not include the payables turnover ratio for Vulcan Materials Co. This ratio would have provided insights into how quickly the company pays its suppliers, which is essential for managing working capital effectively.

4. Working Capital Turnover: The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate sales. Vulcan Materials Co's working capital turnover has shown some fluctuations across quarters, with a range of 4.18 to 7.74. A higher ratio indicates that the company is effectively utilizing its working capital to drive revenue growth.

Overall, based on the activity ratios analyzed, Vulcan Materials Co appears to have generally efficient management of inventory and working capital, as well as effective collection of receivables. More comprehensive analysis may be required to understand the payables turnover and its impact on the company's overall financial health.

Average number of days

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
Days of inventory on hand (DOH) days 38.52 35.58 37.07 36.65 36.73 35.14 37.10 41.51 45.54 49.25 45.64 45.17 45.80 46.23 44.72 46.24 45.54 43.65 46.41 46.21
Days of sales outstanding (DSO) days — 56.30 55.86 47.94 42.19 61.56 61.31 55.61 51.49 66.87 51.01 44.40 38.55 48.30 51.04 43.79 39.42 54.77 54.71 45.21
Number of days of payables days — — — — — — — — — — — — — — — — — — — —

The Days of Inventory on Hand (DOH) for Vulcan Materials Co have remained relatively stable over the past eight quarters, ranging from 35.14 days to 41.51 days. This suggests that the company has been efficient in managing its inventory levels to meet demand without excessive stockpiling.

On the other hand, the Days of Sales Outstanding (DSO) have shown some fluctuation, with a range of 47.94 days to 61.56 days over the same period. This indicates variability in the time taken by customers to pay their bills, which may have implications for the company's cash flow management and credit policies.

Unfortunately, data on the Number of Days of Payables is not available for analysis in this dataset. However, understanding this metric is crucial for assessing how long the company takes to pay its suppliers, which can impact its working capital and relationships with vendors.

Overall, Vulcan Materials Co's activity ratios suggest a need for continuous monitoring and potential improvements in managing receivables and payables to optimize its operational efficiency and liquidity position.

Long-term

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
Fixed asset turnover 1.25 1.26 1.24 1.23 1.21 1.20 1.15 1.05 1.00 0.92 1.13 1.12 1.10 1.12 1.14 1.13 1.14 1.13 1.08 1.06
Total asset turnover 0.54 0.53 0.53 0.53 0.51 0.49 0.47 0.43 0.41 0.37 0.42 0.43 0.42 0.42 0.44 0.47 0.46 0.46 0.44 0.44

Long-term activity ratios provide insight into how effectively a company is utilizing its assets to generate sales.

Fixed asset turnover measures the efficiency of a company in generating sales from its investments in fixed assets. Vulcan Materials Co's fixed asset turnover has been fairly consistent over the past few quarters, ranging between 1.05 and 1.26. A higher fixed asset turnover indicates that the company is generating more revenue per dollar invested in fixed assets, which is generally favorable.

Total asset turnover reflects the company's ability to generate sales from all its assets. Vulcan Materials Co's total asset turnover has also been relatively stable around 0.43 to 0.53 over the recent quarters. A higher total asset turnover ratio suggests that the company is efficient in utilizing all its assets to generate sales.

Overall, the trends in both fixed asset turnover and total asset turnover ratios for Vulcan Materials Co indicate a consistent performance in efficiently utilizing its assets to generate revenue, which is a positive sign for the company's operational efficiency.