Vulcan Materials Company (VMC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.11 | 1.94 | 2.05 | 2.09 | 1.94 |
Vulcan Materials Company has consistently maintained very strong solvency ratios over the period from December 31, 2020, to December 31, 2024.
The Debt-to-assets ratio has remained at 0.00 throughout the period, indicating that the company has not relied on debt to finance its assets. This suggests that Vulcan Materials Company has a strong financial position with a low level of debt relative to its total assets.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also stayed at 0.00 across the years, demonstrating that the company's capital structure is not heavily reliant on debt. Vulcan Materials Company has effectively funded its operations and investments using internal resources rather than external borrowing.
The Financial leverage ratio has fluctuated slightly within a narrow range from 1.94 to 2.11 during the period under review. This metric indicates the extent to which the company is using debt to finance operations compared to equity. A lower financial leverage ratio signifies a lower dependence on debt financing, implying a lower financial risk for the company.
In conclusion, based on the solvency ratios analyzed, Vulcan Materials Company appears to be in a robust financial position with a prudent capital structure characterized by low debt levels and strong reliance on equity.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.13 | 7.34 | 5.24 | 6.91 | 6.53 |
The interest coverage ratio for Vulcan Materials Company has shown fluctuations over the past five years. In December 2020, the company's interest coverage was 6.53, which increased to 6.91 by December 2021. However, there was a decline in the ratio to 5.24 by December 2022.
Despite the dip in 2022, the interest coverage ratio improved significantly in the following years, reaching 7.34 in December 2023 and 7.13 in December 2024. These ratios indicate that Vulcan Materials Company has generally been able to comfortably cover its interest obligations over the years, with a strong performance in recent periods compared to the slight decline in 2022.
Overall, the trend in the interest coverage ratio suggests that Vulcan Materials Company has been effectively managing its interest expenses relative to its operating income, demonstrating a reasonable level of financial stability and ability to meet its debt obligations.