Vulcan Materials Company (VMC)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,417,600 | 7,398,300 | 7,580,200 | 7,678,700 | 7,782,000 | 7,679,600 | 7,582,100 | 7,423,500 | 7,315,200 | 7,189,600 | 6,617,810 | 6,024,560 | 5,552,200 | 5,121,020 | 4,914,400 | 4,875,930 | 4,856,830 | 4,867,860 | 4,976,730 | 4,981,830 |
| Total current assets | US$ in thousands | 2,265,700 | 2,212,900 | 1,976,500 | 1,907,600 | 2,524,900 | 2,701,200 | 2,043,700 | 1,792,500 | 1,902,000 | 2,333,400 | 1,899,500 | 1,662,600 | 1,691,100 | 1,718,420 | 2,200,420 | 1,993,010 | 2,277,160 | 2,265,330 | 2,030,110 | 1,276,780 |
| Total current liabilities | US$ in thousands | 1,239,100 | 774,100 | 796,800 | 696,200 | 797,600 | 864,200 | 793,300 | 756,900 | 956,600 | 1,362,500 | 1,029,300 | 892,700 | 769,300 | 876,693 | 599,245 | 565,857 | 1,047,880 | 1,069,890 | 1,038,750 | 475,676 |
| Working capital turnover | 7.23 | 5.14 | 6.43 | 6.34 | 4.51 | 4.18 | 6.06 | 7.17 | 7.74 | 7.41 | 7.60 | 7.83 | 6.02 | 6.08 | 3.07 | 3.42 | 3.95 | 4.07 | 5.02 | 6.22 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,417,600K ÷ ($2,265,700K – $1,239,100K)
= 7.23
The working capital turnover ratio for Vulcan Materials Company has shown fluctuations over the past few years. The ratio measures how efficiently the company is using its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.
From March 2020 to September 2020, the working capital turnover ratio decreased steadily, indicating a decline in efficiency in leveraging working capital to generate revenue. However, from September 2020 to March 2021, there was a significant drop in the ratio, showing that the company improved its working capital management efficiency.
Between March 2021 and September 2022, the working capital turnover ratio exhibited a general increasing trend, reaching a peak of 7.83 in March 2022, suggesting a positive improvement in utilizing working capital to drive revenue during this period.
Subsequently, the ratio fluctuated but stayed relatively high from March 2022 to December 2024, with occasional dips and rises. Overall, the working capital turnover ratio for Vulcan Materials Company has demonstrated an upward trend, indicating enhanced efficiency in converting working capital into revenue over the years, with some fluctuation in between. It is essential for the company to monitor and manage its working capital effectively to sustain or improve this trend in the future.
Peer comparison
Dec 31, 2024