Valmont Industries Inc (VMI)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,051,646 | 4,021,556 | 4,038,196 | 4,029,836 | 4,117,580 | 4,236,330 | 4,285,260 | 4,378,030 | 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 |
| Total current assets | US$ in thousands | 1,683,390 | 1,807,160 | 1,784,040 | 1,779,570 | 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 |
| Total current liabilities | US$ in thousands | 811,425 | 770,049 | 705,034 | 674,834 | 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 |
| Working capital turnover | 4.65 | 3.88 | 3.74 | 3.65 | 3.87 | 3.91 | 4.07 | 4.23 | 4.40 | 4.21 | 3.80 | 3.58 | 3.65 | 3.83 | 3.74 | 3.19 | 3.25 | 2.94 | 3.09 | 3.19 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,051,646K ÷ ($1,683,390K – $811,425K)
= 4.65
The working capital turnover ratio for Valmont Industries Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is efficiently managing its working capital.
From March 31, 2020, to December 31, 2024, the working capital turnover ratio ranged from a low of 2.94 on September 30, 2020, to a high of 4.65 on December 31, 2024. The ratio generally improved over the period, with some minor fluctuations.
Key points to note include the following:
1. The ratio reached its lowest point of 2.94 on September 30, 2020, indicating a temporary dip in working capital efficiency during that period.
2. The ratio showed a consistent improvement from the end of 2020 to mid-2022, reaching a peak of 4.40 on December 31, 2022, and then slightly decreasing in the following periods.
3. Despite some fluctuations, overall, the working capital turnover ratio exhibited a favorable trend, suggesting that Valmont Industries Inc was effectively managing its working capital to support its sales activities and operations efficiently.
Analyzing the working capital turnover ratio provides valuable insights into the company's operational efficiency and its ability to generate sales from the invested working capital.
Peer comparison
Dec 31, 2024