Valmont Industries Inc (VMI)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 527,062 | 470,622 | 320,697 | 307,122 | 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 |
| Interest expense (ttm) | US$ in thousands | 58,722 | 61,694 | 60,853 | 59,924 | 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 |
| Interest coverage | 8.98 | 7.63 | 5.27 | 5.13 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $527,062K ÷ $58,722K
= 8.98
The interest coverage ratio of Valmont Industries Inc has shown a generally increasing trend over the past few years, indicating the company's improving ability to cover its interest obligations with its operating income.
From March 31, 2020, where the interest coverage ratio was 5.96, it displayed a slight decrease to 5.46 by September 30, 2020, before gradually increasing to 9.11 by December 31, 2022.
However, there was a slight fluctuation in the ratio from March 31, 2023, to September 30, 2023, where it decreased from 9.25 to 6.17, before dropping significantly to 5.13 by December 31, 2023.
The ratio remained relatively stable around the 5 to 6 range for the next few quarters before picking up again to 8.98 by December 31, 2024.
Overall, the fluctuation in the interest coverage ratio of Valmont Industries Inc suggests some variability in the company's ability to cover its interest expenses with its operating income, which warrants further investigation and monitoring.
Peer comparison
Dec 31, 2024