Vulcan Materials Company (VMC)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,782,000 | 7,679,600 | 7,582,100 | 7,423,500 | 7,315,200 | 7,189,600 | 6,617,800 | 6,024,500 | 5,552,100 | 5,120,920 | 4,914,310 | 4,875,890 | 4,856,830 | 4,867,860 | 4,976,730 | 4,981,830 | 4,929,101 | 4,831,001 | 4,652,441 | 4,524,911 |
| Total current assets | US$ in thousands | 2,524,900 | 2,701,200 | 2,043,700 | 1,792,500 | 1,902,000 | 2,333,400 | 1,899,500 | 1,662,600 | 1,696,600 | 1,718,400 | 2,200,400 | 1,993,000 | 2,277,200 | 2,265,330 | 2,030,110 | 1,276,780 | 1,379,330 | 1,324,240 | 1,255,020 | 1,083,850 |
| Total current liabilities | US$ in thousands | 797,600 | 864,200 | 793,300 | 756,900 | 956,600 | 1,362,500 | 1,029,300 | 892,700 | 769,300 | 876,700 | 599,200 | 565,900 | 1,047,900 | 1,069,890 | 1,038,750 | 475,676 | 535,563 | 535,284 | 663,588 | 659,607 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,782,000K ÷ ($2,524,900K – $797,600K)
= 4.51
The working capital turnover of Vulcan Materials Co fluctuated over the past eight quarters, ranging from a low of 4.18 in Q3 2023 to a high of 7.83 in Q1 2022. This ratio indicates the number of times a company's working capital is used to support sales revenue during a specific period. A higher working capital turnover ratio suggests that the company efficiently utilizes its working capital to generate sales.
In the most recent quarter, Q4 2023, Vulcan Materials Co had a working capital turnover of 4.51, which indicates a moderate level of efficiency in converting its working capital into sales. The decreasing trend from Q1 2022 to Q3 2023 could suggest potential inefficiencies in managing working capital or changes in sales patterns.
It is important for Vulcan Materials Co to closely monitor its working capital turnover to ensure optimal utilization of resources and efficient operations. Further analysis of the underlying factors affecting the ratio fluctuations, such as changes in inventory management, receivables collection, or payment practices, could provide insights into improving the company's financial performance and overall liquidity management.
Peer comparison
Dec 31, 2023