Vulcan Materials Company (VMC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 559,700 | 931,100 | 161,400 | 235,000 | 1,197,070 |
| Short-term investments | US$ in thousands | — | — | — | — | 34,301 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,239,100 | 797,600 | 956,600 | 769,300 | 1,047,880 |
| Quick ratio | 0.45 | 1.17 | 0.17 | 0.31 | 1.18 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($559,700K
+ $—K
+ $—K)
÷ $1,239,100K
= 0.45
The quick ratio of Vulcan Materials Company has shown fluctuations over the years. As of December 31, 2020, the quick ratio was 1.18, indicating that the company had $1.18 in liquid assets available to cover each dollar of current liabilities. However, by December 31, 2021, the quick ratio decreased significantly to 0.31, suggesting a potential liquidity strain as the company had only $0.31 in quick assets for every dollar of current liabilities.
The trend continued to worsen by December 31, 2022, with the quick ratio dropping to 0.17, further highlighting the company's limited ability to meet its short-term obligations using its most liquid assets. This sharp decline may raise concerns about Vulcan Materials Company's liquidity position and ability to cover immediate financial obligations.
There was a notable improvement in the quick ratio by December 31, 2023, where it increased to 1.17, indicating that the company was better positioned to meet its short-term liabilities with its quick assets. However, the quick ratio dropped again by December 31, 2024, to 0.45, although it was higher than in the previous year, suggesting some volatility in the company's liquidity profile.
In summary, Vulcan Materials Company has experienced fluctuations in its quick ratio over the years, which may reflect varying levels of liquidity and ability to cover short-term obligations with its most liquid assets. Investors and stakeholders should closely monitor these trends to assess the company's financial health and ability to manage liquidity risks effectively.
Peer comparison
Dec 31, 2024