Valmont Industries Inc (VMI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 524,584 | 297,778 | 433,249 | 286,785 | 225,953 |
| Long-term debt | US$ in thousands | 729,941 | 1,107,880 | 870,935 | 947,072 | 728,431 |
| Total stockholders’ equity | US$ in thousands | 1,542,090 | 1,354,280 | 1,580,850 | 1,386,850 | 1,182,060 |
| Return on total capital | 23.09% | 12.09% | 17.67% | 12.29% | 11.83% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $524,584K ÷ ($729,941K + $1,542,090K)
= 23.09%
Valmont Industries Inc's return on total capital has shown variability over the past five years. The ratio increased from 11.83% as of December 31, 2020, to 12.29% as of December 31, 2021, reflecting a moderate improvement. Notably, there was a significant surge in the return on total capital to 17.67% by December 31, 2022, indicating a strong performance in utilizing its total capital effectively.
However, there was a slight decline in the ratio to 12.09% by December 31, 2023, suggesting a temporary dip in the company's ability to generate returns from its total capital. Nonetheless, there was a remarkable rebound in the most recent period, with the return on total capital reaching 23.09% as of December 31, 2024, signifying a substantial improvement and likely efficient capital allocation by the company.
Overall, the trend in Valmont Industries Inc's return on total capital demonstrates fluctuations but shows a positive trajectory with notable improvements in certain periods, indicating the company's ability to generate returns relative to its total capital investment.
Peer comparison
Dec 31, 2024