Valmont Industries Inc (VMI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 164,315 | 203,041 | 185,406 | 177,232 | 400,726 |
| Short-term investments | US$ in thousands | — | 26,803 | 25,008 | — | — |
| Total current liabilities | US$ in thousands | 811,425 | 723,102 | 803,993 | 765,856 | 673,303 |
| Cash ratio | 0.20 | 0.32 | 0.26 | 0.23 | 0.60 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($164,315K
+ $—K)
÷ $811,425K
= 0.20
The cash ratio of Valmont Industries Inc has shown fluctuations over the years as follows:
- In December 31, 2020, the cash ratio was 0.60, indicating that the company had $0.60 in cash and cash equivalents for every dollar of current liabilities. This was a relatively strong position, suggesting the company had ample liquidity to cover its short-term obligations.
- However, in the subsequent years, the cash ratio decreased significantly. By December 31, 2021, the cash ratio had dropped to 0.23, and further declined to 0.26 by December 31, 2022. These lower ratios may signal a decrease in the company's ability to cover its short-term obligations with its available cash reserves.
- The cash ratio improved slightly by December 31, 2023, reaching 0.32. This uptick may indicate a better liquidity position compared to the previous year, but it is still below the initial ratio in 2020.
- The cash ratio decreased again by December 31, 2024, falling to 0.20. This decline suggests that the company may be facing challenges in maintaining adequate cash reserves relative to its current liabilities.
Overall, the trend in Valmont Industries Inc's cash ratio indicates fluctuations in the company's liquidity position over the years, with some years showing stronger cash reserves relative to its short-term obligations than others. Monitoring this ratio is crucial to assess the company's ability to meet its immediate financial commitments.
Peer comparison
Dec 31, 2024