Valmont Industries Inc (VMI)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 6.04 6.11 6.19 5.89 6.13 5.80 5.40 5.57 5.47 5.19 4.67 4.30 4.50 3.58 3.75 4.03 4.40 4.39 4.26 4.57
Receivables turnover 6.19 5.63 5.74 6.11 6.26 6.29 6.58 6.74 7.11 6.72 6.22 5.94 6.05 6.15 5.67 6.03 5.60 5.48 5.40 5.52
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
Working capital turnover 4.65 3.88 3.74 3.65 3.87 3.91 4.07 4.23 4.40 4.21 3.80 3.58 3.65 3.83 3.74 3.19 3.25 2.94 3.09 3.19

The activity ratios of Valmont Industries Inc provide insights into the efficiency of the company's operations:

1. Inventory Turnover: Valmont's inventory turnover ratio has been gradually increasing from 4.57 in March 2020 to 6.04 in December 2024. This indicates that the company is managing its inventory more efficiently, selling its products faster, and restocking inventory less frequently.

2. Receivables Turnover: The receivables turnover ratio shows an overall stable trend, fluctuating between 5.40 and 7.11 during the period. This suggests that Valmont is collecting its accounts receivables at a consistent pace, with some variations over time.

3. Payables Turnover: The payables turnover ratio has been increasing steadily from 7.30 in September 2020 to 9.58 in December 2024. This signifies that Valmont is taking longer to pay its suppliers, potentially improving cash flow management and strengthening supplier relationships.

4. Working Capital Turnover: Valmont's working capital turnover ratio has shown some fluctuations but generally increased from 2.94 in September 2020 to 4.65 in December 2024. A higher working capital turnover ratio indicates that the company is generating more revenue per dollar of working capital employed, reflecting improved operational efficiency.

Overall, the trends in these activity ratios suggest that Valmont Industries Inc has been effectively managing its inventory, receivables, payables, and working capital over the years, which is essential for optimizing operational performance and financial health.

Average number of days

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
Days of inventory on hand (DOH) days 60.44 59.74 59.00 61.96 59.50 62.90 67.64 65.49 66.75 70.39 78.11 84.92 81.09 102.00 97.22 90.60 82.91 83.22 85.62 79.92
Days of sales outstanding (DSO) days 58.95 64.80 63.57 59.69 58.32 58.07 55.46 54.19 51.31 54.28 58.71 61.43 60.32 59.38 64.38 60.48 65.20 66.63 67.53 66.15
Number of days of payables days 38.11 34.58 32.96 30.33 32.38 32.28 32.07 33.28 33.00 35.51 38.58 42.53 38.70 52.68 53.23 51.07 49.51 49.98 45.96 40.12

Valmont Industries Inc's activity ratios provide insight into how efficiently the company manages its inventory, sales, and payables.

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows a somewhat fluctuating pattern over the periods analyzed. It decreased from 79.92 days on March 31, 2020, to 59.50 days on December 31, 2023, before slightly increasing to 60.44 days by December 31, 2024. A decrease in DOH indicates inventory turnover is improving, which can be a positive sign of efficient inventory management.

2. Days of Sales Outstanding (DSO):
- The trend in DSO shows a declining pattern over the periods studied, which is typically a positive indication. The company reduced its DSO from 66.15 days on March 31, 2020, to 58.95 days by December 31, 2024. A lower DSO suggests faster collection of receivables, improving the company's cash flow and liquidity position.

3. Number of Days of Payables:
- The trend in the number of days of payables demonstrates a decreasing trend from 40.12 days on March 31, 2020, to 38.11 days by December 31, 2024. A decrease in days of payables could indicate that the company is managing its payables more effectively, potentially taking advantage of supplier discounts or negotiating better payment terms.

Overall, the decreasing trends in DSO and days of payables, along with the fluctuations in DOH, suggest that Valmont Industries Inc has been improving its efficiency in managing its working capital and optimizing its cash conversion cycle over the periods analyzed.

Long-term

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
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
Total asset turnover 1.22 1.15 1.17 1.16 1.18 1.22 1.19 1.21 1.21 1.14 1.06 1.02 1.00 0.97 0.93 0.99 0.97 0.94 0.96 0.99

Valmont Industries Inc's long-term activity ratios show positive trends over the years. The Fixed Asset Turnover ratio has been steadily increasing from 4.91 in March 2020 to 6.88 in December 2024, indicating that the company is generating more sales from its fixed assets. This signifies improved efficiency in asset utilization.

Similarly, the Total Asset Turnover ratio has shown an increasing trend from 0.99 in March 2020 to 1.22 in December 2024. This demonstrates that Valmont Industries Inc is utilizing its total assets more effectively to generate sales revenue and reflects the company's ability to generate revenue relative to its asset base.

Overall, both ratios suggest that Valmont Industries Inc is efficiently managing its assets to generate sales, which is a positive indication of the company's operational performance and efficiency in utilizing its resources.