Valmont Industries Inc (VMI)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.84 | 5.52 | 5.13 | 5.30 | 5.47 | 5.19 | 4.67 | 4.30 | 4.50 | 3.58 | 3.75 | 4.03 | 4.40 | 4.39 | 4.26 | 4.57 | 4.62 | 5.11 | 4.79 | 4.89 |
| Receivables turnover | 6.28 | 6.30 | 6.60 | 6.76 | 7.11 | 6.72 | 6.22 | 5.94 | 6.05 | 6.15 | 5.67 | 6.03 | 5.60 | 5.48 | 5.40 | 5.52 | 5.70 | 5.49 | 5.40 | 5.29 |
| 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 |
| Working capital turnover | 3.88 | 3.92 | 4.08 | 4.25 | 4.40 | 4.21 | 3.80 | 3.58 | 3.65 | 3.83 | 3.74 | 3.19 | 3.25 | 2.94 | 3.09 | 3.19 | 2.98 | 3.21 | 3.22 | 3.16 |
Valmont Industries Inc's inventory turnover has shown moderate fluctuations over the past years, ranging from 3.58 to 5.84. The company's ability to efficiently manage its inventory improved in recent quarters, as seen from the increasing trend in the inventory turnover ratio.
Regarding receivables turnover, Valmont Industries Inc has maintained a relatively stable performance, with ratios fluctuating between 5.40 and 7.11. This indicates the company's effectiveness in collecting outstanding receivables from customers, with a slightly improved performance in the last few quarters.
The payables turnover ratio for Valmont Industries Inc has fluctuated between 6.86 and 11.06, indicating the speed at which the company pays its suppliers. The data suggests that the company has been able to manage its payables efficiently, with some minor fluctuations in recent periods.
In terms of working capital turnover, the company has shown a stable performance, with ratios ranging from 2.94 to 4.40. This metric reflects how effectively the company is utilizing its working capital to generate sales revenue. Overall, Valmont Industries Inc has shown consistent performance in utilizing its working capital efficiently over the past few years.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 62.53 | 66.11 | 71.17 | 68.82 | 66.75 | 70.39 | 78.11 | 84.92 | 81.09 | 102.00 | 97.22 | 90.60 | 82.91 | 83.22 | 85.62 | 79.92 | 79.03 | 71.37 | 76.14 | 74.61 |
| Days of sales outstanding (DSO) | days | 58.14 | 57.89 | 55.29 | 54.03 | 51.31 | 54.28 | 58.71 | 61.43 | 60.32 | 59.38 | 64.38 | 60.48 | 65.20 | 66.63 | 67.53 | 66.15 | 64.01 | 66.50 | 67.59 | 69.02 |
| Number of days of payables | days | 34.03 | 33.92 | 33.74 | 34.97 | 33.00 | 35.51 | 38.58 | 42.53 | 38.70 | 52.68 | 53.23 | 51.07 | 49.51 | 49.98 | 45.96 | 40.12 | 37.39 | 37.37 | 42.73 | 41.37 |
Days of inventory on hand (DOH) measures how many days, on average, the company holds its inventory before selling it. Valmont Industries Inc has shown a fluctuating trend in its DOH over the periods, indicating varying levels of inventory management efficiency. The decrease in DOH from Q3 2023 to Q4 2023 suggests an improvement in inventory turnover and potentially more efficient inventory management.
Days of sales outstanding (DSO) represents the average number of days it takes for the company to collect payment after making a sale. Valmont Industries Inc has experienced relatively consistent DSO levels, indicating stable collection practices. The decrease in DSO from Q3 2023 to Q1 2020 may indicate quicker collections or more efficient accounts receivable management during that period.
Number of days of payables shows the average number of days the company takes to pay its suppliers. Valmont Industries Inc has shown a consistent trend in its payables days, with a slight increase from Q3 2023 to Q4 2023. This could suggest that the company is taking longer to pay its suppliers, which may impact relationships with vendors or cash flow management.
Overall, analyzing these activity ratios together provides insight into how efficiently Valmont Industries Inc manages its inventory, collects payments from customers, and pays its suppliers, which are crucial aspects of its working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 1.19 | 1.22 | 1.19 | 1.22 | 1.21 | 1.14 | 1.06 | 1.02 | 1.00 | 0.97 | 0.93 | 0.99 | 0.97 | 0.94 | 0.96 | 0.99 | 0.98 | 1.01 | 1.01 | 1.02 |
Valmont Industries Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, indicate the company's efficiency in utilizing its assets to generate revenue.
The fixed asset turnover ratio has displayed fluctuations over the periods presented, ranging from a low of 4.79 to a high of 7.33. This ratio measures how well the company is using its fixed assets to generate sales. A higher ratio indicates better efficiency in utilizing fixed assets to generate revenue, which is generally favorable. Valmont Industries Inc's fixed asset turnover has generally shown an increasing trend, reaching a peak in recent periods, suggesting improved utilization of fixed assets.
On the other hand, the total asset turnover ratio ranges from 0.93 to 1.22 during the periods under review. This ratio reflects the company's ability to generate sales relative to its total assets. A higher ratio indicates that the company is generating more sales with fewer assets, signaling better asset utilization efficiency. Valmont Industries Inc's total asset turnover exhibits variability but generally shows an upward trend, indicating improved efficiency in generating sales with its total asset base.
Overall, the trend in both fixed asset turnover and total asset turnover ratios reflects improved efficiency in utilizing assets to generate revenue for Valmont Industries Inc.