Valmont Industries Inc (VMI)

Solvency ratios

	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
Debt-to-assets ratio	0.22	0.26	0.29	0.32	0.32	0.28	0.26	0.27	0.24	0.26	0.27	0.27	0.27	0.26	0.25	0.24	0.25	0.27	0.27	0.28
Debt-to-capital ratio	0.32	0.37	0.41	0.44	0.45	0.39	0.37	0.39	0.36	0.38	0.40	0.39	0.41	0.41	0.40	0.37	0.38	0.40	0.41	0.42
Debt-to-equity ratio	0.47	0.58	0.69	0.79	0.82	0.65	0.59	0.64	0.55	0.62	0.67	0.65	0.68	0.68	0.66	0.60	0.62	0.67	0.69	0.71
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

Based on the provided data, we can analyze the solvency ratios of Valmont Industries Inc as follows:

1. Debt-to-assets ratio:
- The debt-to-assets ratio indicates the proportion of the company's assets that are funded by debt. Valmont Industries Inc has maintained a relatively stable debt-to-assets ratio over the past few years, ranging from 0.22 to 0.32. This suggests that the company relies moderately on debt to finance its assets.

2. Debt-to-capital ratio:
- The debt-to-capital ratio measures the proportion of the company's capital structure that is financed by debt. Valmont Industries Inc's debt-to-capital ratio has fluctuated between 0.32 and 0.45 during the period under review. The ratio has shown some variability, indicating changes in the company's debt and capital mix.

3. Debt-to-equity ratio:
- The debt-to-equity ratio reflects the level of financial leverage in the company's capital structure. Valmont Industries Inc's debt-to-equity ratio has ranged from 0.47 to 0.82 over the period analyzed. The trend shows fluctuations in the company's reliance on debt for funding compared to equity.

4. Financial leverage ratio:
- The financial leverage ratio provides insight into the company's overall leverage position. Valmont Industries Inc's financial leverage ratio has varied from 2.16 to 2.63 throughout the years. A lower financial leverage ratio suggests less reliance on debt to finance operations.

Overall, the analysis of these solvency ratios indicates that Valmont Industries Inc has maintained a reasonable level of debt and leverage in its capital structure. The company's ability to manage its debt levels effectively reflects positively on its solvency position. However, it is essential for investors to closely monitor any significant changes in these ratios to assess the company's financial risk and stability.

Coverage ratios

	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
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

In the case of Valmont Industries Inc, the interest coverage ratio has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a stronger ability to meet interest payments on its debt.

Valmont Industries Inc's interest coverage ratio ranged from 5.46 to 9.25 during this period. The ratio experienced an overall increasing trend from March 31, 2020, to June 30, 2022, reaching its peak at 9.11 on December 31, 2022. This improvement suggests the company's enhanced ability to cover its interest expenses with its operating income.

However, from March 31, 2023, to December 31, 2024, the interest coverage ratio showed a downward trend, dropping to as low as 5.13 by the end of December 2024. This decline may indicate potential pressure on the company's ability to meet its interest obligations with its operating income during this period.

Overall, while Valmont Industries Inc has demonstrated fluctuating interest coverage ratios, the company showed periods of improved coverage followed by a decline. Stakeholders should continue to monitor the company's financial performance and debt management strategies to ensure sustainable interest coverage ratios in the future.