Valmont Industries Inc (VMI)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,038,950 | 3,219,030 | 3,280,660 | 2,696,300 | 2,563,290 |
| Payables | US$ in thousands | 358,311 | 360,312 | 347,841 | 268,099 | 197,957 |
| Payables turnover | 11.27 | 8.93 | 9.43 | 10.06 | 12.95 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,038,950K ÷ $358,311K
= 11.27
Valmont Industries Inc's payables turnover has fluctuated over the past five years, ranging from a low of 8.93 in 2022 to a high of 12.95 in 2019. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by analyzing how quickly it pays off its suppliers.
A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which may indicate effective cash management or good relationships with suppliers. Conversely, a lower payables turnover ratio could imply that the company is taking longer to pay its bills, potentially signaling liquidity issues or strained supplier relationships.
Overall, Valmont Industries Inc's payables turnover ratio has generally been healthy over the past five years, showing that the company has been effectively managing its accounts payable and maintaining positive relationships with its suppliers.
Peer comparison
Dec 31, 2023