Vulcan Materials Company (VMC)

Current 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
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
Current ratio		3.17	3.13	2.58	2.37	1.99	1.71	1.85	1.86	2.21	1.96	3.67	3.52	2.17	2.12	1.95	2.68	2.58	2.47	1.89	1.64

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,524,900K ÷ $797,600K
= 3.17

Based on the data provided for Vulcan Materials Co's current ratio over the past eight quarters, we observe a generally increasing trend from Q1 2022 to Q4 2023. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has improved from 1.86 in Q1 2022 to 3.17 in Q4 2023.

This indicates that Vulcan Materials Co's liquidity position has strengthened over the quarters, as it has a greater ability to meet its short-term liabilities with its current assets. The company has shown consistent improvement in managing its current assets and liabilities, which is a positive sign of financial health and stability.

Additionally, the current ratio exceeding 1 suggests that Vulcan Materials Co has more than enough current assets to cover its current liabilities, indicating a healthy liquidity position. It is important to note that a higher current ratio signifies better liquidity and financial strength, which can also potentially provide a cushion during economic downturns or unexpected financial challenges.