Valmont Industries Inc (VMI)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 291,557 | 337,725 | 471,887 | 456,873 | 433,249 | 374,287 | 340,510 | 304,416 | 286,785 | 290,170 | 275,454 | 236,269 | 225,953 | 222,579 | 222,164 | 240,198 | 227,905 | 223,322 | 200,618 | 202,814 |
| Interest expense (ttm) | US$ in thousands | 56,808 | 54,750 | 52,907 | 49,376 | 47,534 | 45,424 | 44,826 | 43,876 | 42,612 | 41,975 | 41,398 | 41,060 | 41,075 | 40,748 | 40,270 | 40,289 | 40,153 | 40,389 | 41,367 | 43,041 |
| Interest coverage | 5.13 | 6.17 | 8.92 | 9.25 | 9.11 | 8.24 | 7.60 | 6.94 | 6.73 | 6.91 | 6.65 | 5.75 | 5.50 | 5.46 | 5.52 | 5.96 | 5.68 | 5.53 | 4.85 | 4.71 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $291,557K ÷ $56,808K
= 5.13
Valmont Industries Inc has shown a generally positive trend in its interest coverage ratio over the past few quarters. The interest coverage ratio measures the company's ability to meet its interest payments on debt obligations.
Looking at the data provided, the interest coverage ratio has generally improved over time, indicating that the company's earnings are sufficient to cover its interest expenses. Specifically, the interest coverage ratio has increased from 4.71 in the first quarter of 2019 to 9.25 in the first quarter of 2023, showing a strong improvement in the company's ability to service its debt.
This trend suggests that Valmont Industries Inc has been effectively managing its debt obligations and generating enough earnings to comfortably cover its interest payments. Overall, the increasing trend in the interest coverage ratio is a positive indicator of the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2023