Valmont Industries Inc (VMI)

Liquidity ratios

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
Current ratio 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 2.79 2.61 2.71 2.95
Quick ratio 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 1.62 1.56 1.54 1.64
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

Valmont Industries Inc's liquidity ratios show a strong ability to meet its short-term obligations. The current ratio has been consistently above 2, indicating that the company has more than enough current assets to cover its current liabilities. Additionally, the current ratio has shown a slight improvement over the periods, which is a positive trend.

The quick ratio, which excludes inventory from current assets, also reflects a healthy liquidity position for Valmont Industries Inc. The quick ratio has generally been above 1, indicating that the company has an adequate cushion to cover its short-term liabilities without relying on inventory.

Furthermore, the cash ratio, which is the most conservative liquidity measure, suggests that the company has sufficient cash or cash equivalents to cover its current liabilities. While the cash ratio fluctuates, it remains above 0.2, showing that Valmont Industries Inc has a solid cash position relative to its short-term obligations.

Overall, based on these liquidity ratios, Valmont Industries Inc appears to have a strong liquidity position and should be able to meet its short-term financial obligations without facing significant liquidity constraints.

Additional liquidity measure

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 conversion cycle days 86.64 90.08 92.71 87.88 85.05 89.16 98.24 103.82 102.71 108.71 108.37 100.01 98.59 99.87 107.19 105.96 105.64 100.51 101.00 102.26

The cash conversion cycle of Valmont Industries Inc has shown fluctuations over the past few quarters. The cash conversion cycle measures the time it takes for a company to convert its investment in inventory into cash inflows from sales.

From the data provided, we can see that the cash conversion cycle has ranged from a low of 85.05 days to a high of 108.71 days over the last two years. A longer cash conversion cycle indicates that the company is taking more time to sell its inventory and collect payments, which can tie up cash and potentially lead to liquidity challenges.

Overall, the trend in the cash conversion cycle for Valmont Industries Inc appears to have been relatively stable in recent quarters, with minor fluctuations. However, the company may want to focus on strategies to optimize its inventory management and accounts receivable collection processes to potentially reduce the length of its cash conversion cycle, thereby improving its cash flow efficiency and overall financial health.