Valmont Industries Inc (VMI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 348,259 | 150,849 | 433,249 | 195,630 | 140,693 |
| Total stockholders’ equity | US$ in thousands | 1,542,090 | 1,354,280 | 1,580,850 | 1,386,850 | 1,182,060 |
| ROE | 22.58% | 11.14% | 27.41% | 14.11% | 11.90% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $348,259K ÷ $1,542,090K
= 22.58%
Valmont Industries Inc's return on equity (ROE) has fluctuated over the past five years. In 2020, the ROE was 11.90%, indicating that for each dollar of shareholders' equity, the company generated a return of 11.90%. The ROE increased to 14.11% in 2021, reflecting an improvement in the company's profitability and efficiency in generating profits relative to shareholders' equity.
In 2022, Valmont Industries Inc's ROE saw a significant jump to 27.41%, suggesting a more robust performance in utilizing shareholders' equity to generate profits. However, this level was not sustained as the ROE dropped to 11.14% in 2023. This decline could indicate challenges or changes in the company's operations that affected its profitability during that year.
The most recent data for 2024 shows a notable increase in ROE to 22.58%. This improvement indicates that Valmont Industries Inc was able to enhance its profitability and efficiently utilize shareholders' equity to generate returns for investors.
Overall, Valmont Industries Inc's ROE has shown variability over the past five years, with some years demonstrating strong performance in generating profits relative to shareholders' equity, while other years experienced fluctuations. The company should continue to monitor and optimize its operations to sustain and potentially improve its ROE in the future.
Peer comparison
Dec 31, 2024