Valmont Industries Inc (VMI)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,130,740 | 4,249,490 | 4,298,420 | 4,391,190 | 4,298,263 | 4,131,296 | 3,903,297 | 3,663,340 | 3,458,614 | 3,305,148 | 3,170,913 | 2,965,430 | 2,864,736 | 2,749,985 | 2,706,833 | 2,718,877 | 2,737,232 | 2,750,969 | 2,738,343 | 2,712,119 |
| Total current assets | US$ in thousands | 1,787,630 | 1,807,430 | 1,802,180 | 1,815,500 | 1,780,580 | 1,850,070 | 1,856,650 | 1,840,580 | 1,712,760 | 1,614,770 | 1,595,270 | 1,607,640 | 1,554,620 | 1,558,150 | 1,479,820 | 1,414,430 | 1,432,220 | 1,388,400 | 1,348,000 | 1,298,900 |
| Total current liabilities | US$ in thousands | 723,102 | 724,582 | 749,194 | 781,349 | 803,993 | 868,191 | 830,759 | 818,687 | 765,856 | 750,979 | 747,222 | 679,309 | 673,303 | 623,919 | 604,825 | 561,211 | 513,779 | 530,947 | 497,301 | 440,839 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,130,740K ÷ ($1,787,630K – $723,102K)
= 3.88
The working capital turnover ratio for Valmont Industries Inc has shown some fluctuations over the past five years. The ratio has ranged from a low of 2.94 to a high of 4.40 during this period.
The trend in the working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales. A higher turnover ratio generally indicates better efficiency in managing working capital.
On a quarterly basis, the working capital turnover ratio has generally been above 3.0, indicating that the company is effectively using its working capital to support its operations and generate revenue.
However, there are fluctuations in the ratio which suggest variability in the company's working capital management efficiency over time. It is important for Valmont Industries Inc to assess the reasons behind these fluctuations and work towards maintaining a consistent and optimal level of working capital turnover to support sustainable growth and profitability.
Peer comparison
Dec 31, 2023