Vulcan Materials Company (VMC)
Debt-to-equity 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-equity ratio | 0.52 | 0.56 | 0.59 | 0.46 | 0.50 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,877,300K ÷ $7,483,400K
= 0.52
The debt-to-equity ratio of Vulcan Materials Co has exhibited fluctuations over the past five years, ranging from 0.50 in 2019 to 0.59 in 2021. The ratio decreased to 0.55 in 2020 before further declining to 0.52 in 2023. This trend suggests that the company has been gradually reducing its reliance on debt in relation to equity. A lower debt-to-equity ratio indicates a lesser level of financial leverage and lower financial risk. Overall, the decreasing trend in the debt-to-equity ratio implies a healthier financial position for Vulcan Materials Co with a decreasing reliance on debt to support its operations and growth.
Peer comparison
Dec 31, 2023