Valmont Industries Inc (VMI)

Liquidity ratios

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
Current ratio 2.07 2.35 2.53 2.64 2.47 2.49 2.41 2.32 2.21 2.13 2.23 2.25 2.24 2.15 2.13 2.37 2.31 2.50 2.45 2.52
Quick ratio 1.01 1.19 1.23 1.23 1.23 1.20 1.13 1.05 1.01 0.90 0.94 0.94 0.98 0.94 1.02 1.30 1.36 1.51 1.41 1.40
Cash ratio 0.20 0.26 0.23 0.25 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

Valmont Industries Inc has shown a consistent current ratio above 2.0 over the past five years, indicating strong liquidity and the company's ability to cover its short-term obligations with its current assets. However, there was a slight decrease in the current ratio in the latest quarter, potentially signaling a need to monitor the company's liquidity position closely.

The quick ratio, which factors in only the most liquid assets, has also displayed a declining trend over the last few years. Despite the ratios remaining above 1.0, suggesting the company's ability to meet its short-term obligations without relying on inventory, the decreasing trend warrants further investigation into the company's liquidity management.

The cash ratio, measuring the company's ability to cover its current liabilities with its cash and cash equivalents, has fluctuated over the years but generally remained below 1.0. This implies that Valmont Industries Inc may not have enough cash on hand to cover its short-term obligations solely from its cash reserves. The decreasing trend in the cash ratio since 2020 could indicate potential challenges in maintaining sufficient cash reserves for short-term needs.

Overall, while Valmont Industries Inc's liquidity ratios indicate a healthy liquidity position, the declining trends in the quick ratio and cash ratio suggest a need for the company to closely monitor its liquidity management and potentially take actions to improve its short-term liquidity position.

Additional liquidity measure

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
Cash conversion cycle days 81.28 89.97 89.61 91.31 85.45 88.70 91.03 86.41 85.05 89.16 98.24 103.82 102.71 108.71 108.37 100.01 98.59 99.87 107.19 105.96

The cash conversion cycle of Valmont Industries Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.

Initially, the cash conversion cycle was around 105 to 107 days, indicating that the company took over three months to complete a full cash cycle. However, there was a gradual decrease in the cash conversion cycle, reaching around 85 to 90 days by the end of December 31, 2024.

A decreasing trend in the cash conversion cycle suggests that the company has been able to manage its working capital more efficiently. This can be influenced by improvements in inventory management, faster collection of receivables, and/or increased time to pay suppliers.

Overall, the declining trend in Valmont Industries Inc's cash conversion cycle from 2020 to 2024 indicates improved efficiency in managing its cash flows and working capital, which can lead to better liquidity and financial performance.