Valmont Industries Inc (VMI)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 203,041 | 185,406 | 177,232 | 400,726 | 353,542 |
| Short-term investments | US$ in thousands | 26,803 | 25,008 | — | — | — |
| Receivables | US$ in thousands | 657,960 | 604,181 | 571,593 | 511,714 | 480,000 |
| Total current liabilities | US$ in thousands | 723,102 | 803,993 | 765,856 | 673,303 | 513,779 |
| Quick ratio | 1.23 | 1.01 | 0.98 | 1.36 | 1.62 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($203,041K
+ $26,803K
+ $657,960K)
÷ $723,102K
= 1.23
The quick ratio of Valmont Industries Inc has fluctuated over the past five years. As of December 31, 2023, the quick ratio stands at 1.23, indicating the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 suggests that Valmont Industries Inc has an adequate level of liquid assets to cover its current liabilities.
Comparing this to previous years, the quick ratio was lower in 2022 at 1.01 and 2021 at 0.98, indicating a potential liquidity strain during those periods. However, the quick ratio improved in 2020 at 1.36 and was the highest in 2019 at 1.62, showcasing better liquidity positions in those years.
Overall, the fluctuating trend in the quick ratio may indicate variations in the company's liquidity management and its ability to quickly convert assets into cash to meet short-term obligations. Further analysis of Valmont Industries Inc's financial health considering other financial ratios and factors would provide a more comprehensive understanding of its financial performance.
Peer comparison
Dec 31, 2023