Valmont Industries Inc (VMI)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 527,062 | 470,622 | 320,697 | 307,122 | 291,557 | 337,725 | 471,887 | 456,873 | 433,249 | 374,287 | 340,510 | 304,416 | 286,785 | 290,170 | 275,454 | 236,269 | 225,953 | 222,579 | 222,164 | 240,198 |
| Long-term debt | US$ in thousands | 729,941 | 898,201 | 1,017,540 | 1,107,640 | 1,107,880 | 977,260 | 952,704 | 985,636 | 870,935 | 935,129 | 995,647 | 963,065 | 947,072 | 897,488 | 860,878 | 729,589 | 728,431 | 779,788 | 778,283 | 776,139 |
| Total stockholders’ equity | US$ in thousands | 1,542,090 | 1,541,690 | 1,471,480 | 1,409,290 | 1,354,280 | 1,501,740 | 1,612,220 | 1,540,100 | 1,580,850 | 1,512,730 | 1,488,380 | 1,476,050 | 1,386,850 | 1,318,140 | 1,294,620 | 1,224,810 | 1,182,060 | 1,162,440 | 1,126,840 | 1,087,410 |
| Return on total capital | 23.20% | 19.29% | 12.88% | 12.20% | 11.84% | 13.62% | 18.40% | 18.09% | 17.67% | 15.29% | 13.71% | 12.48% | 12.29% | 13.10% | 12.78% | 12.09% | 11.83% | 11.46% | 11.66% | 12.89% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $527,062K ÷ ($729,941K + $1,542,090K)
= 23.20%
Valmont Industries Inc's return on total capital has displayed some fluctuations over the past few years, ranging from a low of 11.46% in September 2020 to a peak of 23.20% in December 2024. The trend shows an overall improvement in performance, with a noticeable increase from 2022 onwards. Despite a dip in the third quarter of 2023, the company managed to recover and achieve a significant surge by the end of 2024, indicating effective capital allocation and operational efficiency. A return on total capital above 15% is considered healthy, and Valmont Industries Inc's performance in the last quarter of 2024 surpasses this benchmark, suggesting strong financial management and value creation for shareholders.
Peer comparison
Dec 31, 2024