Valmont Industries Inc (VMI)
Quick ratio
| 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 | US$ in thousands | 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 | 353,542 | 327,200 | 256,944 | 211,237 |
| Short-term investments | US$ in thousands | 26,803 | 25,334 | 29,388 | — | 25,008 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 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 | 480,000 | 501,215 | 507,061 | 512,852 |
| Total current liabilities | US$ in thousands | 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 | 513,779 | 530,947 | 497,301 | 440,839 |
| 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 |
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 shown fluctuations over the past several quarters, indicating varying levels of liquidity. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1.0 typically indicates the company has an appropriate level of liquid assets to cover its short-term liabilities.
From December 2019 to March 2020, the quick ratio ranged between 1.62 and 1.40, suggesting a healthy liquidity position during that period. However, the ratio dipped below 1.0 in the subsequent quarters, reaching as low as 0.90 in September 2022, which could indicate potential difficulty in meeting short-term obligations.
There was a notable recovery in liquidity from March 2023 onwards, with the quick ratio gradually increasing to 1.23 by December 2023. This upward trend indicates the company has improved its ability to cover short-term liabilities with liquid assets.
Overall, the trend in Valmont Industries Inc's quick ratio suggests fluctuations in liquidity levels, with recent improvements in liquidity positioning in the most recent quarters. Analysts should continue to monitor the quick ratio in future periods to assess the company's ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023