Valmont Industries Inc (VMI)
Debt-to-equity 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-equity ratio | 0.82 | 0.55 | 0.68 | 0.62 | 0.67 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,107,880K ÷ $1,354,280K
= 0.82
The debt-to-equity ratio of Valmont Industries Inc has fluctuated over the past five years. In 2023, the ratio stands at 0.82, indicating that the company has higher levels of debt relative to equity. This suggests that a larger portion of Valmont's assets are funded by debt compared to equity.
Comparing this to previous years, the ratio has shown variability. In 2022, the ratio was 0.55, indicating a lower reliance on debt. However, in 2021, the ratio increased to 0.68, signaling a higher debt burden. In 2020 and 2019, the ratios were 0.62 and 0.67 respectively, falling within the range of values observed in recent years.
Overall, the increasing trend from 2022 to 2023 raises attention as it suggests a shift towards higher debt levels relative to equity. A high debt-to-equity ratio can indicate higher financial risk, as the company may struggle to meet its debt obligations, especially in challenging economic conditions. Further analysis of Valmont's financial health and debt management strategies would be advisable to fully understand the implications of this trend.
Peer comparison
Dec 31, 2023