Valmont Industries Inc (VMI)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 729,941 | 1,107,880 | 870,935 | 947,072 | 728,431 |
| Total stockholders’ equity | US$ in thousands | 1,542,090 | 1,354,280 | 1,580,850 | 1,386,850 | 1,182,060 |
| Debt-to-equity ratio | 0.47 | 0.82 | 0.55 | 0.68 | 0.62 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $729,941K ÷ $1,542,090K
= 0.47
The debt-to-equity ratio of Valmont Industries Inc has fluctuated over the past five years. As of December 31, 2020, the ratio stood at 0.62, indicating a moderate level of debt relative to equity. By December 31, 2021, the ratio increased slightly to 0.68, suggesting a higher proportion of debt in the company's capital structure. In the subsequent year, the ratio decreased to 0.55, indicating a lower reliance on debt financing.
However, by the end of December 31, 2023, the debt-to-equity ratio rose sharply to 0.82, signaling a significant increase in debt compared to equity. This could potentially indicate heightened financial leverage or increased borrowing by the company. Finally, as of December 31, 2024, the ratio fell to 0.47, demonstrating a reduced level of debt in relation to equity.
Overall, Valmont Industries Inc's debt-to-equity ratio has shown varying trends over the analyzed period, reflecting changes in the company's capital structure and financial leverage. It would be important to conduct further analysis to understand the driving factors behind these fluctuations and assess the implications for the company's financial health and risk profile.
Peer comparison
Dec 31, 2024