Valmont Industries Inc (VMI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.52% | 30.02% | 100.00% | 25.55% | 26.82% |
| Operating profit margin | 12.90% | 7.08% | 9.97% | 8.29% | 7.92% |
| Pretax margin | 11.46% | 5.85% | 8.37% | 7.43% | 6.67% |
| Net profit margin | 8.56% | 3.66% | 9.97% | 5.65% | 4.93% |
Valmont Industries Inc has exhibited varying levels of profitability over the past five years, as indicated by its profitability ratios. The gross profit margin, which represents the proportion of revenue retained after deducting the cost of goods sold, has fluctuated, with a noteworthy improvement from 2021 to 2022, reaching 100.00% before stabilizing around 30% in 2023 and 2024. This may suggest changes in production costs or pricing strategies during the period.
The operating profit margin, which reveals the efficiency of the company in managing its operating expenses in relation to revenue, also shows fluctuations. There was a steady increase from 2020 to 2022, which peaked at 9.97% before declining slightly in 2023 and then rising again to 12.90% in 2024. This trend indicates an improved operational efficiency in generating profits.
The pretax margin, representing the percentage of each dollar of revenue that translates into pre-tax profit, reflected a positive trend over the years, with a peak at 11.46% in 2024. This indicates the company's ability to effectively manage its costs and expenses to generate higher pre-tax profits.
Lastly, the net profit margin, which signifies the company's bottom-line profitability after all expenses have been deducted, displayed fluctuations. There was a sharp increase in 2022 compared to the previous years, signaling a potential improvement in cost control or revenue generation. However, the margin decreased in 2023 before rebounding in 2024, indicating variability in the company's net profitability.
Overall, Valmont Industries Inc's profitability ratios demonstrate a mix of performance levels over the five-year period, with improvements in certain areas and fluctuations in others. It is essential for investors and stakeholders to consider these trends alongside other financial metrics when evaluating the company's financial health and sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.75% | 8.38% | 12.18% | 8.32% | 7.65% |
| Return on assets (ROA) | 10.46% | 4.34% | 12.18% | 5.67% | 4.76% |
| Return on total capital | 23.09% | 12.09% | 17.67% | 12.29% | 11.83% |
| Return on equity (ROE) | 22.58% | 11.14% | 27.41% | 14.11% | 11.90% |
Based on the provided data for Valmont Industries Inc, the profitability ratios reflect strong performance over the years under review.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown an increasing trend from 7.65% in 2020 to 15.75% in 2024, with significant jumps observed in 2022 and 2024.
- This indicates that the company is efficiently generating operating profits relative to its total assets, with a notable improvement in 2022 and 2024.
2. Return on Assets (ROA):
- The ROA also demonstrates positive growth, moving from 4.76% in 2020 to 10.46% in 2024.
- While there was a slight dip in 2023, the overall trend shows an effective utilization of assets to generate profits.
3. Return on Total Capital:
- The Return on Total Capital has consistently increased over the years, reaching 23.09% in 2024 from 11.83% in 2020.
- This ratio reflects the company's ability to generate returns for both shareholders and debt holders on the total invested capital.
4. Return on Equity (ROE):
- The ROE has shown robust growth from 11.90% in 2020 to 22.58% in 2024, with a peak of 27.41% in 2022.
- This indicates that the company is effectively utilizing equity to generate profits for its shareholders.
Overall, the profitability ratios of Valmont Industries Inc suggest that the company has been successful in increasing its profitability and generating returns for its investors over the years, showcasing strong financial performance and efficient use of its assets and capital.