Vulcan Materials Company (VMC)

Liquidity ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Current ratio	1.83	2.86	2.48	2.74	3.17	3.13	2.58	2.37	1.99	1.71	1.85	1.86	2.20	1.96	3.67	3.52	2.17	2.12	1.95	2.68
Quick ratio	0.45	0.56	0.14	0.43	1.19	0.39	0.21	0.18	0.17	0.09	0.12	0.14	0.31	0.19	1.49	1.34	1.18	1.05	0.79	0.25
Cash ratio	0.45	0.56	0.14	0.43	1.19	0.39	0.21	0.18	0.17	0.09	0.12	0.14	0.31	0.19	1.49	1.34	1.18	1.05	0.79	0.25

Based on the provided data, Vulcan Materials Company's liquidity ratios exhibit fluctuations over the quarters. The current ratio, which measures the company's ability to cover short-term obligations with its short-term assets, shows variability but generally remains above 1, indicating a strong ability to meet its current liabilities.

The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also fluctuates but tends to be lower than the current ratio. This suggests that Vulcan Materials may have some reliance on inventory to meet its short-term obligations.

The cash ratio, which provides insight into the company's ability to cover short-term liabilities with its cash and cash equivalents, mirrors the trend of the quick ratio but generally reflects a tighter liquidity position, especially in some quarters where the ratio falls below 0.5.

Overall, while Vulcan Materials Company displays some fluctuations in its liquidity ratios, the current ratio consistently remains above 1, indicating a healthy liquidity position over the periods analyzed. However, management should continue to monitor and manage liquidity effectively to ensure the company can meet its short-term obligations in a sustainable manner.

Additional liquidity measure

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash conversion cycle	days	45.93	43.27	42.24	41.25	38.52	35.58	37.07	36.65	36.73	35.14	37.10	41.51	45.53	49.25	45.65	45.16	45.80	46.23	44.72	46.24

The cash conversion cycle of Vulcan Materials Company has fluctuated over the periods provided in the dataset. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 2020 to December 2024, the cash conversion cycle of Vulcan Materials Company ranged from a low of 35.14 days in September 2022 to a high of 49.25 days in September 2021. A lower cash conversion cycle indicates that the company is more efficient in managing its inventory, receivables, and payables, resulting in quicker cash inflows.

Overall, the trend shows some variability, with fluctuations in the cash conversion cycle over time. Monitoring and analyzing this metric can provide insights into the company's operational efficiency, effectiveness of inventory management, and liquidity. It is essential for Vulcan Materials Company to maintain an optimal cash conversion cycle to ensure smooth operations and healthy cash flows.