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.
Peer comparison
Dec 31, 2023