Vulcan Materials Company (VMC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,545,700 | 14,234,600 | 13,682,600 | 11,686,900 | 10,648,800 |
| Total stockholders’ equity | US$ in thousands | 7,483,400 | 6,928,600 | 6,545,000 | 6,027,300 | 5,621,860 |
| Financial leverage ratio | 1.94 | 2.05 | 2.09 | 1.94 | 1.89 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,545,700K ÷ $7,483,400K
= 1.94
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations, with higher ratios indicating higher levels of debt. Vulcan Materials Co's financial leverage ratio has shown some fluctuations over the past five years, ranging from 1.89 to 2.09.
In 2023, the financial leverage ratio decreased to 1.94 from the previous year's ratio of 2.05. This suggests that the company reduced its reliance on debt financing in 2023 compared to 2022. However, the ratio remains above the levels seen in 2020 and 2019, indicating that Vulcan Materials Co still maintains a significant amount of debt relative to its equity.
Overall, the trend in Vulcan Materials Co's financial leverage ratio implies that the company has been managing its debt levels relative to equity, but investors and stakeholders may want to monitor this ratio closely to ensure that the company's financial position remains sustainable.
Peer comparison
Dec 31, 2023