Valmont Industries Inc (VMI)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,329,970 | 3,496,830 | 3,457,200 | 3,465,380 | 3,477,450 | 3,486,180 | 3,615,840 | 3,604,490 | 3,557,000 | 3,621,730 | 3,674,750 | 3,581,480 | 3,447,250 | 3,411,260 | 3,404,140 | 3,008,080 | 2,953,160 | 2,923,910 | 2,831,840 | 2,757,580 |
| Total stockholders’ equity | US$ in thousands | 1,542,090 | 1,541,690 | 1,471,480 | 1,409,290 | 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 |
| Financial leverage ratio | 2.16 | 2.27 | 2.35 | 2.46 | 2.57 | 2.32 | 2.24 | 2.34 | 2.25 | 2.39 | 2.47 | 2.43 | 2.49 | 2.59 | 2.63 | 2.46 | 2.50 | 2.52 | 2.51 | 2.54 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,329,970K ÷ $1,542,090K
= 2.16
The financial leverage ratio of Valmont Industries Inc fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio started at 2.54 on March 31, 2020, and trended downward to 2.16 by December 31, 2024, indicating a decreasing trend in the company's financial leverage over this period.
A financial leverage ratio of 2.54 on March 31, 2020, suggests that for every $1 of equity, the company had $2.54 of debt. As the ratio decreased to 2.16 by December 31, 2024, it indicates that the company's reliance on debt funding decreased relative to equity financing during this period.
The fluctuations in the financial leverage ratio can reflect changes in the company's capital structure, debt repayment strategies, or profitability. A decreasing trend in the financial leverage ratio may indicate improved financial stability, reduced risk of financial distress, or management's focus on deleveraging.
Overall, the trend in Valmont Industries Inc's financial leverage ratio shows a reduction in debt relative to equity over the period analyzed, which may have implications for the company's financial risk profile and strategic decision-making.
Peer comparison
Dec 31, 2024