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.