Valmont Industries Inc (VMI)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.45 | 0.39 | 0.37 | 0.39 | 0.36 | 0.38 | 0.40 | 0.39 | 0.41 | 0.41 | 0.40 | 0.37 | 0.38 | 0.40 | 0.41 | 0.42 | 0.40 | 0.41 | 0.41 | 0.41 |
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 shown variability over the past few quarters, ranging from 0.36 to 0.45. This ratio indicates the proportion of the company's capital structure that is financed by debt. A lower ratio suggests a lower reliance on debt financing, which can be viewed favorably by investors and creditors as it signifies lower financial risk.
The trend in Valmont Industries Inc's debt-to-capital ratio has been relatively stable around the range of 0.37 to 0.41, with occasional fluctuations. It is important to monitor changes in this ratio over time, as a significant increase may indicate a higher level of financial leverage and potential risks associated with debt obligations. Conversely, a decreasing ratio may reflect a stronger financial position and a more conservative capital structure.
Overall, the debt-to-capital ratio provides insights into how the company funds its operations and investments, guiding stakeholders in assessing the firm's financial health and risk profile.
Peer comparison
Dec 31, 2023