Valmont Industries Inc (VMI)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,843,644 | 3,829,564 | 3,742,680 | 3,847,232 | 3,985,163 | 3,869,809 | 3,675,737 | 3,470,583 | 3,280,663 | 2,347,005 | 2,228,200 | 2,066,472 | 1,976,463 | 1,965,362 | 1,916,404 | 1,902,737 | 1,932,264 | 1,929,505 | 1,948,840 | 1,936,375 |
| Payables | US$ in thousands | 358,311 | 355,934 | 346,000 | 368,576 | 360,312 | 376,508 | 388,498 | 404,410 | 347,841 | 338,723 | 324,946 | 289,110 | 268,099 | 269,113 | 241,294 | 209,132 | 197,957 | 197,535 | 228,137 | 219,460 |
| Payables turnover | 10.73 | 10.76 | 10.82 | 10.44 | 11.06 | 10.28 | 9.46 | 8.58 | 9.43 | 6.93 | 6.86 | 7.15 | 7.37 | 7.30 | 7.94 | 9.10 | 9.76 | 9.77 | 8.54 | 8.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,843,644K ÷ $358,311K
= 10.73
The payables turnover ratio of Valmont Industries Inc has shown some fluctuations over the period indicated. The ratio measures how quickly the company is paying off its suppliers and is calculated by dividing the total purchases by the average accounts payable during the period.
From the data provided, we can see that the payables turnover ratio has generally ranged between 6.86 and 11.06 over the past few years. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which can be a positive sign of efficient working capital management. On the other hand, a lower ratio may suggest that the company is taking longer to pay its suppliers.
It is worth noting the downward trend in payables turnover from the end of 2022 to the end of 2023, which may indicate a potential slowing down in the company's payments to its suppliers. However, the ratio still remains relatively high, indicating that the company is managing its accounts payable effectively.
Overall, the payables turnover ratio for Valmont Industries Inc reflects the company's ability to manage its accounts payable efficiently and maintain good relationships with its suppliers. It is essential to continue monitoring this ratio to ensure the company's financial health and liquidity position.
Peer comparison
Dec 31, 2023