Valmont Industries Inc (VMI)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,067,420 | 4,116,820 | 4,345,250 | 3,459,920 | 2,854,220 |
| Receivables | US$ in thousands | 654,360 | 657,960 | 604,181 | 571,593 | 511,714 |
| Receivables turnover | 6.22 | 6.26 | 7.19 | 6.05 | 5.58 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,067,420K ÷ $654,360K
= 6.22
The receivables turnover ratio for Valmont Industries Inc has shown a generally increasing trend over the past five years, indicating an improvement in the company's management of its accounts receivable. In 2020, the receivables turnover ratio was 5.58, which means that, on average, the company collected its accounts receivable approximately 5.58 times during the year.
By the end of 2024, the receivables turnover ratio had increased to 6.22, suggesting that the company was collecting its outstanding receivables more efficiently. The peak in the ratio was observed in 2022 at 7.19, potentially indicating a stronger focus on collecting receivables promptly.
A higher receivables turnover ratio is generally favorable as it signifies that the company is collecting its receivables more quickly, which can improve cash flow and liquidity. Overall, the increasing trend in Valmont Industries' receivables turnover ratio reflects an enhancement in the company's credit management and efficiency in collecting payments from its customers.
Peer comparison
Dec 31, 2024