Valmont Industries Inc (VMI)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,116,820 | 4,345,250 | 3,459,920 | 2,854,220 | 2,732,240 |
| Total current assets | US$ in thousands | 1,787,630 | 1,780,580 | 1,712,760 | 1,554,620 | 1,432,220 |
| Total current liabilities | US$ in thousands | 723,102 | 803,993 | 765,856 | 673,303 | 513,779 |
| Working capital turnover | 3.87 | 4.45 | 3.65 | 3.24 | 2.97 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,116,820K ÷ ($1,787,630K – $723,102K)
= 3.87
The working capital turnover ratio of Valmont Industries Inc has shown a fluctuating trend over the past five years. The ratio has ranged from a low of 2.97 in 2019 to a high of 4.45 in 2022, with the most recent figure for 2023 coming in at 3.87.
A high working capital turnover ratio generally indicates that the company is efficient in managing its working capital, as it shows how effectively the company is using its current assets to generate revenue. A decreasing trend in the ratio may suggest a slowdown in the company's operations or potential inefficiencies in managing its working capital.
Overall, Valmont Industries Inc has demonstrated varying levels of efficiency in utilizing its working capital to support its business activities over the analyzed period. The company may benefit from further analysis to identify any underlying causes for the fluctuations in the working capital turnover ratio and consider strategies to enhance working capital management.
Peer comparison
Dec 31, 2023