Vulcan Materials Company (VMC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 559,700 | 931,100 | 161,400 | 235,000 | 1,197,070 |
| Short-term investments | US$ in thousands | — | — | — | — | 34,301 |
| Total current liabilities | US$ in thousands | 1,239,100 | 797,600 | 956,600 | 769,300 | 1,047,880 |
| Cash ratio | 0.45 | 1.17 | 0.17 | 0.31 | 1.18 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($559,700K
+ $—K)
÷ $1,239,100K
= 0.45
The cash ratio of Vulcan Materials Company has exhibited fluctuations over the past five years. As of December 31, 2020, the cash ratio stood at a robust 1.18, indicating the company had $1.18 in cash and cash equivalents for every dollar of current liabilities. However, by December 31, 2021, the cash ratio dropped significantly to 0.31, suggesting a tighter liquidity position with only $0.31 in cash for every dollar of current liabilities.
The trend continued with a further decline in the cash ratio to 0.17 by December 31, 2022, reflecting a potential strain on the company's ability to meet its short-term obligations with available cash. Subsequently, there was a notable improvement by December 31, 2023, as the cash ratio increased sharply to 1.17, indicating a healthier liquidity position compared to the previous year.
By December 31, 2024, the cash ratio improved further to 0.45, showing continued progress in managing liquidity, although it remained below the levels seen in 2020 and 2023. Overall, the fluctuating cash ratio of Vulcan Materials Company suggests varying degrees of liquidity and the importance of closely monitoring cash management practices to ensure the company can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024