Vulcan Materials Company (VMC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,877,300 | 3,875,200 | 3,874,800 | 2,772,200 | 2,784,320 |
| Total stockholders’ equity | US$ in thousands | 7,483,400 | 6,928,600 | 6,545,000 | 6,027,300 | 5,621,860 |
| Debt-to-capital ratio | 0.34 | 0.36 | 0.37 | 0.32 | 0.33 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,877,300K ÷ ($3,877,300K + $7,483,400K)
= 0.34
The debt-to-capital ratio for Vulcan Materials Co has shown some fluctuations over the past five years. The ratio decreased from 0.33 in 2019 to 0.35 in 2020, before decreasing further to 0.37 in 2021. However, there was a slight improvement in 2022 with the ratio decreasing to 0.36. The most recent data for 2023 shows a decrease to 0.34, indicating a lower level of debt relative to the company's total capital.
Overall, the trend in the debt-to-capital ratio suggests that Vulcan Materials Co has been actively managing its debt levels in relation to its capital structure. A decreasing ratio over time generally indicates a lower reliance on debt financing and potentially better financial health. It is important to note that a lower debt-to-capital ratio can signify a more conservative financial position and may be viewed positively by investors and creditors.
Peer comparison
Dec 31, 2023