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.
Peer comparison
Dec 31, 2023