Valmont Industries Inc (VMI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 203,041 | 185,406 | 177,232 | 400,726 | 353,542 |
| Short-term investments | US$ in thousands | 26,803 | 25,008 | — | — | — |
| Total current liabilities | US$ in thousands | 723,102 | 803,993 | 765,856 | 673,303 | 513,779 |
| Cash ratio | 0.32 | 0.26 | 0.23 | 0.60 | 0.69 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($203,041K
+ $26,803K)
÷ $723,102K
= 0.32
The cash ratio of Valmont Industries Inc has shown fluctuations over the past five years. The ratio has ranged from a low of 0.23 in 2021 to a high of 0.69 in 2019. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents.
A higher cash ratio suggests a stronger ability to meet short-term obligations without relying on external financing or liquidating other assets. In contrast, a lower ratio may indicate potential liquidity challenges, as the company may have insufficient cash reserves to cover its immediate obligations.
The declining trend in the cash ratio from 2019 to 2021 may raise concerns about the company's liquidity position during those years. However, the improvement in the ratio in 2022 and 2023 suggests a potential strengthening of the company's liquidity position in the more recent years.
Overall, further analysis and consideration of other liquidity metrics are recommended to gain a more comprehensive understanding of Valmont Industries Inc's liquidity position.
Peer comparison
Dec 31, 2023