Valmont Industries Inc (VMI)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,354,280 | 1,580,850 | 1,386,850 | 1,182,060 | 1,144,340 |
| Debt-to-capital ratio | 0.45 | 0.36 | 0.41 | 0.38 | 0.40 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,107,880K ÷ ($1,107,880K + $1,354,280K)
= 0.45
The debt-to-capital ratio of Valmont Industries Inc has exhibited some variability over the past five years. In 2023, the ratio increased to 0.45 from 0.36 in the previous year, indicating that the company's level of debt relative to its capital has increased. This could suggest that Valmont Industries has taken on more debt in relation to its overall capital structure.
Comparing to historical data, the debt-to-capital ratio in 2023 is higher than the ratios in 2021 and 2020, but lower than the ratio in 2019. This implies that the company's debt levels in relation to its capital have fluctuated over the years.
Overall, a debt-to-capital ratio of 0.45 in 2023 suggests that Valmont Industries relies on debt for approximately 45% of its capital structure. It is important for investors and analysts to monitor this ratio to assess the company's leverage and financial risk going forward.
Peer comparison
Dec 31, 2023