Valmont Industries Inc (VMI)
Working capital 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 current assets | US$ in thousands | 1,683,390 | 1,787,630 | 1,780,580 | 1,712,760 | 1,554,620 |
| Total current liabilities | US$ in thousands | 811,425 | 723,102 | 803,993 | 765,856 | 673,303 |
| Working capital turnover | 4.66 | 3.87 | 4.45 | 3.65 | 3.24 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,067,420K ÷ ($1,683,390K – $811,425K)
= 4.66
Based on the provided data, Valmont Industries Inc's working capital turnover has shown an increasing trend over the years. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
In 2020, the working capital turnover ratio was 3.24, indicating that for every dollar invested in working capital, the company generated $3.24 in sales revenue. The ratio increased to 3.65 in 2021, further improving to 4.45 in 2022, before decreasing slightly to 3.87 in 2023.
Notably, the ratio surged to 4.66 in 2024, suggesting a significant improvement in efficiency in utilizing working capital to drive sales revenue. A higher working capital turnover ratio generally signifies better management of working capital and improved liquidity.
Overall, the increasing trend in Valmont Industries Inc's working capital turnover ratio from 2020 to 2024 indicates an enhanced efficiency in utilizing working capital to generate sales revenue, showcasing the company's ability to effectively manage its resources for business operations.
Peer comparison
Dec 31, 2024