Valmont Industries Inc (VMI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,787,630 | 1,780,580 | 1,712,760 | 1,554,620 | 1,432,220 |
| Total current liabilities | US$ in thousands | 723,102 | 803,993 | 765,856 | 673,303 | 513,779 |
| Current ratio | 2.47 | 2.21 | 2.24 | 2.31 | 2.79 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,787,630K ÷ $723,102K
= 2.47
The current ratio of Valmont Industries Inc has shown some fluctuations over the past five years. As of December 31, 2023, the current ratio stands at 2.47, an improvement compared to the previous year's ratio of 2.21. This indicates that the company's current assets are 2.47 times higher than its current liabilities, reflecting a stronger liquidity position.
Although the current ratio has fluctuated slightly over the years, it has generally remained above 2, suggesting that Valmont Industries Inc has consistently maintained a healthy level of current assets to cover its short-term obligations. A current ratio above 2 is generally considered favorable, as it indicates the company has an adequate buffer to meet its short-term financial obligations.
Overall, the current ratio trend for Valmont Industries Inc demonstrates a strong liquidity position, providing a positive signal to investors and creditors about the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023