Valmont Industries Inc (VMI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.02% | 100.00% | 25.55% | 26.82% | 24.99% |
| Operating profit margin | 7.08% | 9.97% | 8.29% | 7.92% | 8.34% |
| Pretax margin | 5.85% | 8.37% | 7.43% | 6.67% | 7.38% |
| Net profit margin | 3.66% | 9.97% | 5.65% | 4.93% | 5.63% |
Valmont Industries Inc's profitability ratios have shown some fluctuations over the past five years. The gross profit margin, which measures the percentage of revenue that exceeds the cost of goods sold, has varied significantly, ranging from 24.99% in 2019 to 100.00% in 2022, and then declining to 30.02% in 2023. This erratic performance may indicate changes in the company's cost structure or pricing strategies.
The operating profit margin, reflecting the percentage of revenue that remains after deducting operating expenses, has also fluctuated, with a peak of 9.97% in 2022 and a low of 7.08% in 2023. This metric suggests the company's ability to control operational costs and generate profit from its core business activities.
The pretax margin, which shows the percentage of revenue that remains after all expenses except taxes are deducted, has ranged from 6.67% in 2020 to 8.37% in 2022. The decline to 5.85% in 2023 may indicate increased non-operating expenses affecting profitability.
The net profit margin, indicating the percentage of revenue that represents the company's bottom line profit after all expenses, has also shown fluctuations, varying from 4.93% in 2020 to 9.97% in 2022 before dropping to 3.66% in 2023. This downward trend in net profit margin highlights the potential impact of various factors such as taxes, interest expenses, and non-recurring items on the company's overall profitability.
Overall, the analysis of Valmont Industries Inc's profitability ratios reveals a mixed performance with fluctuations in key metrics over the past five years, indicating potential shifts in the company's cost management, pricing, and overall profitability strategies. Further investigation into the underlying reasons for these fluctuations may provide insights into the company's financial health and performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.38% | 12.18% | 8.32% | 7.65% | 8.12% |
| Return on assets (ROA) | 4.34% | 12.18% | 5.67% | 4.76% | 5.48% |
| Return on total capital | 12.09% | 17.67% | 12.29% | 11.83% | 11.94% |
| Return on equity (ROE) | 11.14% | 27.41% | 14.11% | 11.90% | 13.44% |
Valmont Industries Inc's profitability ratios show a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has fluctuated, with a notable decrease from 12.18% in 2022 to 8.38% in 2023. This indicates the company's ability to generate operating income from its assets has declined.
- Return on assets (ROA) has also varied, with a significant drop from 12.18% in 2022 to 4.34% in 2023. This suggests a decrease in the company's overall profitability in generating profits relative to its total assets.
- Return on total capital has shown fluctuations with a decrease from 17.67% in 2022 to 12.09% in 2023. This ratio reflects the company's efficiency in generating returns from both debt and equity capital invested in the business.
- Return on equity (ROE) has been inconsistent over the years, reaching a high of 27.41% in 2022 but dropping to 11.14% in 2023. This ratio indicates how much profit the company is generating from shareholders' equity.
Overall, Valmont Industries Inc's profitability ratios indicate a need for further analysis to understand the factors contributing to the fluctuations and to assess the company's overall profitability and performance in generating returns for its stakeholders.