Valmont Industries Inc (VMI)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,564,664 | 3,735,607 | 3,917,735 | 3,939,738 | 4,038,953 | 4,024,873 | 3,937,989 | 4,042,541 | 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 |
| Payables | US$ in thousands | 372,197 | 353,883 | 353,729 | 327,414 | 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 |
| Payables turnover | 9.58 | 10.56 | 11.08 | 12.03 | 11.27 | 11.31 | 11.38 | 10.97 | 11.06 | 10.28 | 9.46 | 8.58 | 9.43 | 6.93 | 6.86 | 7.15 | 7.37 | 7.30 | 7.94 | 9.10 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,564,664K ÷ $372,197K
= 9.58
The payables turnover ratio for Valmont Industries Inc has shown some fluctuations over the specified periods, ranging from 6.86 to 12.03. The payables turnover ratio measures how efficiently a company is managing its trade credit from suppliers. A higher ratio indicates that the company is paying its suppliers more quickly.
From the data provided, we observe an upward trend in the payables turnover ratio over the specified periods from March 31, 2020, to December 31, 2024. This suggests that Valmont Industries Inc has been improving its ability to pay off its payables in a timely manner, which can be seen as a positive sign in terms of managing its working capital effectively.
The ratio reached its peak at 12.03 on March 31, 2024, indicating that the company was paying its suppliers more frequently compared to the other periods. This could imply that Valmont Industries Inc was managing its payables efficiently during this time.
Overall, the trend in the payables turnover ratio for Valmont Industries Inc demonstrates a positive direction in terms of managing its payables, which is vital for maintaining a healthy cash flow and relationships with suppliers.
Peer comparison
Dec 31, 2024