Valmont Industries Inc (VMI)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 203,041 | 172,566 | 166,907 | 172,948 | 185,406 | 166,221 | 154,579 | 149,700 | 177,232 | 169,795 | 199,285 | 391,458 | 400,726 | 443,055 | 353,348 | 294,645 | 353,542 | 327,200 | 256,944 | 211,237 |
| Short-term investments | US$ in thousands | 26,803 | 25,334 | 29,388 | — | 25,008 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.32 | 0.27 | 0.26 | 0.22 | 0.26 | 0.19 | 0.19 | 0.18 | 0.23 | 0.23 | 0.27 | 0.58 | 0.60 | 0.71 | 0.58 | 0.53 | 0.69 | 0.62 | 0.52 | 0.48 |
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 been fluctuating over the past few quarters. As of December 31, 2023, the cash ratio stands at 0.32, indicating that the company has $0.32 in cash and cash equivalents for every $1 of current liabilities. This ratio has shown an upward trend from the previous quarter, where it was at 0.27.
Looking back over the past few years, the cash ratio has generally been above 0.5, except for a significant dip in the first quarter of 2021. The cash ratio peaked at 0.71 in September 2020 and has since fluctuated within a range of 0.18 to 0.71.
Overall, a cash ratio above 1 is considered ideal as it indicates that a company can cover all its short-term liabilities with cash on hand. Valmont Industries Inc's cash ratio below 1 may suggest some dependency on other sources of liquidity besides cash reserves to cover its short-term obligations. Monitoring the trend of the cash ratio over time can provide insights into the company's liquidity position and its ability to meet its short-term financial commitments.
Peer comparison
Dec 31, 2023