Valmont Industries Inc (VMI)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,107,880 | 870,935 | 947,072 | 728,431 | 764,944 |
| Total assets | US$ in thousands | 3,477,450 | 3,557,000 | 3,447,250 | 2,953,160 | 2,807,220 |
| Debt-to-assets ratio | 0.32 | 0.24 | 0.27 | 0.25 | 0.27 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,107,880K ÷ $3,477,450K
= 0.32
The debt-to-assets ratio of Valmont Industries Inc has fluctuated over the past five years, ranging from 0.24 to 0.32. This ratio indicates the proportion of the company's assets financed by debt. A lower ratio suggests a lower reliance on debt for funding operations and investments, while a higher ratio indicates significant debt financing.
In 2023, the debt-to-assets ratio increased to 0.32, signaling that a larger portion of Valmont's assets are financed through debt compared to the previous year. This could potentially increase the company's financial risk, as higher debt levels may lead to higher interest payments and constraints on financial flexibility.
Conversely, the lower ratios observed in 2022 and 2021 indicate a more conservative approach to debt financing, with a higher proportion of assets funded by equity. This approach may offer greater stability and resilience to economic downturns or unexpected challenges.
Overall, the trend in Valmont's debt-to-assets ratio suggests fluctuations in the company's capital structure and financing decisions over the years, highlighting the importance of closely monitoring and managing debt levels to maintain financial health and sustainability.
Peer comparison
Dec 31, 2023