Valmont Industries Inc (VMI)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 227,905 | 223,322 | 200,618 | 202,814 |
| Long-term debt | US$ in thousands | 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 | 764,944 | 764,524 | 765,558 | 741,629 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,144,340 | 1,086,690 | 1,081,740 | 1,078,260 |
| Return on total capital | 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% | 11.94% | 12.06% | 10.86% | 11.14% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $291,557K ÷ ($1,107,880K + $1,354,280K)
= 11.84%
The return on total capital for Valmont Industries Inc has shown some fluctuations over the past few quarters. The trend indicates a general increase in return on total capital from the beginning of 2022 through the first half of 2023, with a slight decline in the most recent quarter compared to the preceding quarter.
The return on total capital was relatively stable at around 11-12% in the earlier quarters of 2020 and 2021, gradually increasing to around 17-18% in mid-2023. This suggests that the company has been able to generate more income relative to the total capital employed in its operations over time.
Overall, the return on total capital for Valmont Industries Inc has been reasonably consistent and shows an upward trend, indicating effective capital utilization and efficient financial management during the analyzed period. However, the slight dip in the most recent quarter may warrant further investigation to understand the underlying reasons behind this decrease.
Peer comparison
Dec 31, 2023