Valmont Industries Inc (VMI)
Total asset 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 |
| Total assets | US$ in thousands | 3,329,970 | 3,477,450 | 3,557,000 | 3,447,250 | 2,953,160 |
| Total asset turnover | 1.22 | 1.18 | 1.22 | 1.00 | 0.97 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,067,420K ÷ $3,329,970K
= 1.22
Total asset turnover is a critical financial ratio that measures a company's ability to generate revenue from its total assets. In the case of Valmont Industries Inc, we can observe a steady improvement in total asset turnover over the years.
Starting at 0.97 in December 31, 2020, the company's total asset turnover ratio increased to 1.00 by December 31, 2021. This suggests that the company was able to generate more revenue for each dollar of assets it owned.
The trend continued positively, with total asset turnover reaching 1.22 by December 31, 2022 and remaining at the same level by December 31, 2024. This indicates that Valmont Industries Inc effectively utilized its assets to generate revenue, potentially through improved operational efficiency or better asset management.
However, there was a slight dip in the ratio to 1.18 by December 31, 2023. Despite this decrease, the company's overall performance in terms of asset utilization appears to be strong and improving over the years. A higher total asset turnover ratio signifies that the company is efficiently utilizing its assets to generate sales, which can be a positive indicator of financial health and operational effectiveness.
Peer comparison
Dec 31, 2024