Vulcan Materials Company (VMC)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,265,700 | 2,524,900 | 1,902,000 | 1,691,100 | 2,277,160 |
| Total current liabilities | US$ in thousands | 1,239,100 | 797,600 | 956,600 | 769,300 | 1,047,880 |
| Current ratio | 1.83 | 3.17 | 1.99 | 2.20 | 2.17 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,265,700K ÷ $1,239,100K
= 1.83
Vulcan Materials Company's current ratio has shown some fluctuations over the past five years. As of December 31, 2020, the current ratio was 2.17, indicating that the company had $2.17 in current assets for every $1 in current liabilities. By the end of 2021, the current ratio improved slightly to 2.20, suggesting a stronger liquidity position. However, by December 31, 2022, the current ratio decreased to 1.99, which may raise concerns about the company's ability to meet its short-term obligations.
In 2023, Vulcan Materials Company saw a significant improvement in its current ratio, which surged to 3.17. This substantial increase indicates a healthier liquidity position and the ability to cover current liabilities with more ease. Nevertheless, by December 31, 2024, the current ratio declined to 1.83, dropping below the ideal threshold of 2. This reduced current ratio may indicate potential liquidity constraints and raise questions about the company's short-term financial health.
Overall, Vulcan Materials Company's current ratio has displayed variability over the years, with some periods reflecting strong liquidity positions and others showing potential liquidity challenges. It is essential for stakeholders to closely monitor the company's liquidity management and assess its ability to meet short-term financial obligations.
Peer comparison
Dec 31, 2024