Valmont Industries Inc (VMI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 297,778 | 433,249 | 286,785 | 225,953 | 227,905 |
| Long-term debt | US$ in thousands | 1,107,880 | 870,935 | 947,072 | 728,431 | 764,944 |
| Total stockholders’ equity | US$ in thousands | 1,354,280 | 1,580,850 | 1,386,850 | 1,182,060 | 1,144,340 |
| Return on total capital | 12.09% | 17.67% | 12.29% | 11.83% | 11.94% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $297,778K ÷ ($1,107,880K + $1,354,280K)
= 12.09%
Valmont Industries Inc's return on total capital has varied over the past five years. The return on total capital was highest in 2022 at 17.67% and lowest in 2020 at 11.83%. In 2023, the return on total capital decreased to 12.09%, which is slightly lower than the previous year.
Overall, the company has shown relatively consistent performance in generating returns on its total capital, indicating efficient utilization of both equity and debt in its operations. However, there may be opportunities for Valmont Industries Inc to improve its return on total capital by further optimizing its capital structure and operational efficiency.
Peer comparison
Dec 31, 2023