Valmont Industries Inc (VMI)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,051,646 | 4,021,556 | 4,038,196 | 4,029,836 | 4,117,580 | 4,236,330 | 4,285,260 | 4,378,030 | 4,298,263 | 4,131,296 | 3,903,297 | 3,663,340 | 3,458,614 | 3,305,148 | 3,170,913 | 2,965,430 | 2,864,736 | 2,749,985 | 2,706,833 | 2,718,877 |
| Property, plant and equipment | US$ in thousands | 588,972 | 609,001 | 604,326 | 608,403 | 617,394 | 603,979 | 603,112 | 598,848 | 595,578 | 596,850 | 607,563 | 610,218 | 598,605 | 617,313 | 609,867 | 605,354 | 597,727 | 573,353 | 563,783 | 553,981 |
| Fixed asset turnover | 6.88 | 6.60 | 6.68 | 6.62 | 6.67 | 7.01 | 7.11 | 7.31 | 7.22 | 6.92 | 6.42 | 6.00 | 5.78 | 5.35 | 5.20 | 4.90 | 4.79 | 4.80 | 4.80 | 4.91 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,051,646K ÷ $588,972K
= 6.88
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales from its investment in fixed assets. In the case of Valmont Industries Inc, the fixed asset turnover has shown a consistent upward trend over the past few years, starting at 4.91 in March 2020 and reaching 6.88 in December 2024.
This indicates that Valmont Industries Inc has been able to effectively utilize its fixed assets to generate revenue, as the company has been able to increase its sales relative to its investment in fixed assets. A higher fixed asset turnover ratio signifies that the company is operating efficiently and effectively managing its fixed assets to generate revenue.
The increasing trend in fixed asset turnover for Valmont Industries Inc suggests improvements in operational efficiency and asset utilization over the years. This trend is generally viewed positively by investors and indicates that the company is making efficient use of its fixed assets to drive sales growth.
Peer comparison
Dec 31, 2024