Vulcan Materials Company (VMC)

Financial leverage 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
Total assets	US$ in thousands	14,545,700	14,620,500	14,333,600	14,076,900	14,234,600	14,615,800	14,181,500	13,860,800	13,682,600	13,688,000	11,571,000	11,332,800	11,686,900	11,590,500	11,398,700	10,629,400	10,648,800	10,539,700	10,480,800	10,296,900
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
Financial leverage ratio		1.94	1.96	1.99	2.01	2.05	2.13	2.11	2.11	2.09	2.13	1.84	1.85	1.94	1.96	1.98	1.90	1.89	1.90	1.95	1.97

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,545,700K ÷ $7,483,400K
= 1.94

The financial leverage ratio of Vulcan Materials Co has shown a decreasing trend over the past eight quarters, indicating a reduction in the company's reliance on debt to finance its operations. The ratio has declined from 2.13 in Q3 2022 to 1.94 in Q4 2023. This suggests that the company has been effectively managing its debt levels and improving its financial stability.

A financial leverage ratio of less than 2 indicates that the company has a lower level of debt in comparison to its equity, which signifies a stronger financial position and lower financial risk. Vulcan Materials Co's consistent decrease in financial leverage ratio reflects a prudent approach towards managing its capital structure and indicates a more conservative financial strategy.

Overall, the downward trend in Vulcan Materials Co's financial leverage ratio suggests a positive development in the company's financial health and its ability to withstand economic uncertainties and market fluctuations. However, it would be essential to monitor this ratio over time to ensure the company maintains an optimal balance between debt and equity for sustainable growth and profitability.