Vulcan Materials Company (VMC)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,877,300 | 3,874,300 | 3,873,200 | 3,876,900 | 3,875,200 | 3,874,200 | 3,873,700 | 3,874,500 | 3,874,800 | 3,874,100 | 2,769,900 | 2,772,900 | 2,772,200 | 2,777,070 | 2,785,650 | 2,785,570 | 2,784,320 | 2,783,070 | 2,781,830 | 2,780,590 |
| 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 |
| Debt-to-equity ratio | 0.52 | 0.52 | 0.54 | 0.55 | 0.56 | 0.57 | 0.58 | 0.59 | 0.59 | 0.60 | 0.44 | 0.45 | 0.46 | 0.47 | 0.48 | 0.50 | 0.50 | 0.50 | 0.52 | 0.53 |
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 shown a decreasing trend over the past eight quarters, indicating improved financial health in terms of leverage. The ratio has declined from 0.61 in Q1 2022 to 0.52 in both Q3 2023 and Q4 2023. This suggests that the company is relying less on debt financing and increasingly funding its operations with equity. A lower debt-to-equity ratio is generally seen as favorable as it implies lower financial risk and better solvency. However, it is important to assess the overall capital structure and financial strategy of the company to fully understand the implications of this trend.
Peer comparison
Dec 31, 2023