Valmont Industries Inc (VMI)

Solvency ratios

	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
Debt-to-assets ratio	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	0.27	0.28	0.28	0.28
Debt-to-capital ratio	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	0.40	0.41	0.41	0.41
Debt-to-equity ratio	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	0.67	0.70	0.71	0.69
Financial leverage ratio	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	2.45	2.51	2.51	2.45

Based on the solvency ratios of Valmont Industries Inc, we can observe the following trends:

1. Debt-to-assets ratio: Over the periods analyzed, the debt-to-assets ratio has generally ranged between 0.24 and 0.32. This indicates that, on average, around 24% to 32% of Valmont's total assets have been financed by debt. The ratio has shown some fluctuations but has remained relatively stable, signaling a moderate level of leverage.

2. Debt-to-capital ratio: The debt-to-capital ratio has varied between 0.36 and 0.45, indicating that debt has represented approximately 36% to 45% of Valmont's total capital structure. This ratio has also displayed some fluctuations but has generally remained within a reasonable range, reflecting a moderate level of debt in the company's capital mix.

3. Debt-to-equity ratio: Valmont's debt-to-equity ratio has shown fluctuations between 0.55 and 0.82, suggesting that the company has been using debt to finance approximately 55% to 82% of its total equity. This indicates a somewhat higher reliance on debt compared to equity in the company's capital structure, although the ratio has not exhibited a consistent upward or downward trend.

4. Financial leverage ratio: The financial leverage ratio has varied between 2.24 and 2.63, reflecting the company's overall financial risk and the proportion of debt in its capital structure compared to equity. The ratio has shown fluctuations but has generally remained within a range indicating moderate financial leverage.

Overall, the solvency ratios of Valmont Industries Inc suggest a moderate level of leverage and financial risk. The company has maintained a relatively stable debt-to-assets and debt-to-capital ratios, while the debt-to-equity ratio has shown some fluctuation. The financial leverage ratio indicates that the company has been managing its debt and equity effectively to support its operations and growth.

Coverage ratios

	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
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

The interest coverage ratio for Valmont Industries Inc has shown a generally positive trend over the past five quarters, indicating the company's ability to comfortably meet its interest obligations from its operating income. The ratio has consistently been above 5x, which suggests that the company's earnings are more than sufficient to cover its interest expenses.

The recent peak in the interest coverage ratio in the third quarter of 2023 at 9.25x reflects a significant improvement in the company's ability to pay interest charges. This demonstrates a strong financial position and reduced financial risk for the company.

Overall, the trend of increasing interest coverage ratios indicates that Valmont Industries Inc has been managing its debt obligations effectively and is in a stable financial position with sufficient earnings to cover its interest expenses.