Valmont Industries Inc (VMI)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,130,740 | 4,249,490 | 4,298,420 | 4,391,190 | 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 | 2,737,232 | 2,750,969 | 2,738,343 | 2,712,119 |
| Property, plant and equipment | US$ in thousands | 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 | 558,129 | 548,368 | 543,557 | 527,329 |
| Fixed asset turnover | 6.69 | 7.04 | 7.13 | 7.33 | 7.22 | 6.92 | 6.42 | 6.00 | 5.78 | 5.35 | 5.20 | 4.90 | 4.79 | 4.80 | 4.80 | 4.91 | 4.90 | 5.02 | 5.04 | 5.14 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,130,740K ÷ $617,394K
= 6.69
Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate sales revenue. Valmont Industries Inc's fixed asset turnover has shown a generally increasing trend over the past several quarters, indicating improved efficiency in generating sales from its fixed assets.
For instance, in the most recent quarter ending December 31, 2023, the fixed asset turnover ratio was reported at 6.69, which means that for every dollar invested in fixed assets, the company generated $6.69 in sales. This represents a significant improvement from the ratio of 4.79 in the same period the prior year.
Overall, the trend suggests that Valmont Industries Inc has been effectively managing and utilizing its fixed assets to drive sales growth, which is a positive indicator of operational efficiency and potential profitability. It is worth noting that a higher fixed asset turnover ratio generally indicates better asset utilization and operational performance.
Peer comparison
Dec 31, 2023