Vulcan Materials Company (VMC)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	933,200	825,200	725,800	604,500	575,600	594,100	593,900	601,900	670,700	647,318	670,206	684,822	584,480	611,054	626,979	614,621	617,662	600,593	564,031	526,125
Total stockholders’ equity	US$ in thousands	7,483,400	7,440,600	7,202,600	6,986,900	6,928,600	6,855,700	6,721,100	6,575,300	6,545,000	6,426,100	6,293,100	6,136,200	6,027,300	5,928,350	5,764,150	5,590,330	5,621,860	5,542,240	5,371,450	5,217,210
ROE		12.47%	11.09%	10.08%	8.65%	8.31%	8.67%	8.84%	9.15%	10.25%	10.07%	10.65%	11.16%	9.70%	10.31%	10.88%	10.99%	10.99%	10.84%	10.50%	10.08%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $933,200K ÷ $7,483,400K
= 12.47%

The Return on Equity (ROE) for Vulcan Materials Co has shown a consistent upward trend over the past two years, from 8.31% in Q4 2022 to 12.47% in Q4 2023. This improvement indicates that the company has been generating more profit relative to its shareholder equity, reflecting enhanced efficiency in its operations.

The ROE performance in 2023 demonstrates a positive trajectory, with steady increases from 8.65% in Q1 2023 to 12.47% in Q4 2023. This suggests that Vulcan Materials Co is effectively utilizing its equity to generate returns for its shareholders. The ROE surpassing 10% consistently in the last two quarters of 2023 indicates that the company is achieving a healthy balance between debt and equity financing to drive profitability.

Overall, the improving trend in Vulcan Materials Co's ROE indicates favorable financial health and efficient management of resources, which is a positive signal for investors and stakeholders.