Valmont Industries Inc (VMI)
Quick ratio
| 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 | US$ in thousands | 164,315 | 200,477 | 163,142 | 169,195 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | 26,803 | 25,334 | 29,388 | — | 25,008 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 654,360 | 714,010 | 703,255 | 659,036 | 657,960 | 673,999 | 651,133 | 650,041 | 604,181 | 614,411 | 627,876 | 616,538 | 571,593 | 537,693 | 559,323 | 491,383 | 511,714 | 502,004 | 500,838 | 492,785 |
| Total current liabilities | US$ in thousands | 811,425 | 770,049 | 705,034 | 674,834 | 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 |
| 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($164,315K
+ $—K
+ $654,360K)
÷ $811,425K
= 1.01
The quick ratio is a liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets. For Valmont Industries Inc, the quick ratio fluctuated over the period from March 31, 2020, to December 31, 2024, with values ranging from 0.90 to 1.51.
A quick ratio of less than 1 indicates that a company may have difficulty meeting its short-term liabilities with its liquid assets alone. Valmont Industries Inc experienced a decline in its quick ratio from June 30, 2021, to September 30, 2022, where it fell below 1, reaching a low of 0.90. This suggests a potential liquidity strain during this period.
However, the company managed to improve its quick ratio from March 31, 2023, onwards, reaching a peak of 1.23 by December 31, 2024. This improvement indicates that Valmont Industries Inc enhanced its ability to cover its short-term obligations with its liquid assets.
Overall, monitoring the quick ratio is crucial for assessing Valmont Industries Inc's liquidity position and its ability to meet its short-term financial commitments.
Peer comparison
Dec 31, 2024