Vulcan Materials Company (VMC)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	931,100	340,000	166,000	139,600	161,400	122,400	120,700	123,100	235,000	135,700	857,600	722,300	1,197,100	1,084,100	816,765	120,041	271,589	90,411	26,031	30,838
Short-term investments	US$ in thousands	—	—	—	4	—	—	—	—	—	34,108	34,264	44	34,301	41,778	—	—	—	—	—	—
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
Cash ratio		1.17	0.39	0.21	0.18	0.17	0.09	0.12	0.14	0.31	0.19	1.49	1.28	1.18	1.05	0.79	0.25	0.51	0.17	0.04	0.05

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($931,100K + $—K) ÷ $797,600K
= 1.17

The cash ratio of Vulcan Materials Co has shown significant fluctuation over the past eight quarters. The company's cash ratio reached its highest point in Q4 2023 at 1.26, indicating that the company had $1.26 in cash and cash equivalents for every $1 of current liabilities. This suggests a strong liquidity position and ability to cover its short-term obligations.

In contrast, the cash ratio was notably lower in Q3 2023 at 0.52, signaling a decrease in the company's ability to meet its short-term liabilities with available cash on hand. This decrease could be a result of various factors, such as increased investments, debt repayments, or operating expenses.

Looking at the trend over the past quarters, we can see that the cash ratio has generally been on an upward trajectory since Q1 2022. This improvement suggests that Vulcan Materials Co has been strengthening its liquidity position over time, which is a positive signal for investors and creditors.

It is important for the company to maintain a healthy cash ratio to ensure it can meet its financial obligations in a timely manner and navigate unforeseen economic challenges. Continued monitoring of the cash ratio will be essential to assess the company's financial health and liquidity management.