Valmont Industries Inc (VMI)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 150,849 | 433,249 | 195,630 | 140,693 | 153,769 |
| Total stockholders’ equity | US$ in thousands | 1,354,280 | 1,580,850 | 1,386,850 | 1,182,060 | 1,144,340 |
| ROE | 11.14% | 27.41% | 14.11% | 11.90% | 13.44% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $150,849K ÷ $1,354,280K
= 11.14%
Valmont Industries Inc's Return on Equity (ROE) has fluctuated over the past five years, ranging from a low of 11.14% in 2023 to a high of 27.41% in 2022. The declining trend in ROE from 2022 to 2023 indicates a decrease in the company's ability to generate profit from shareholders' equity.
The ROE of 11.14% in 2023 suggests that the company generated $0.1114 in net income for every dollar of shareholder equity during that year. This lower ROE could be due to various factors such as decreased profitability, inefficient asset utilization, or increased leveraging.
In contrast, the ROE of 27.41% in 2022 signifies that the company was more efficient in generating profit from shareholders' equity during that year. This could be attributed to higher levels of profitability, effective use of assets, or lower levels of debt.
Overall, the fluctuating ROE of Valmont Industries Inc indicates varying levels of financial performance and efficiency over the past five years, highlighting the importance of continuous monitoring and analysis to assess the company's financial health and profitability.
Peer comparison
Dec 31, 2023