Valmont Industries Inc (VMI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,329,970 | 3,477,450 | 3,557,000 | 3,447,250 | 2,953,160 |
| Total stockholders’ equity | US$ in thousands | 1,542,090 | 1,354,280 | 1,580,850 | 1,386,850 | 1,182,060 |
| Financial leverage ratio | 2.16 | 2.57 | 2.25 | 2.49 | 2.50 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,329,970K ÷ $1,542,090K
= 2.16
The financial leverage ratio for Valmont Industries Inc has been relatively stable over the past five years, fluctuating within a narrow range. The ratio indicates that, on average, the company has maintained a level of financial leverage of around 2.4 times during this period.
A financial leverage ratio of 2.4 implies that for every dollar of equity, the company has approximately $2.40 of debt. This indicates that Valmont Industries Inc relies more on debt financing than equity financing to support its operations and growth.
The slight fluctuations in the ratio from year to year suggest that the company has been managing its debt levels effectively, with minor adjustments being made to its capital structure over time. It is important for investors and stakeholders to monitor changes in the financial leverage ratio to assess the company's risk profile and financial stability.
Peer comparison
Dec 31, 2024