Valmont Industries (Valmont Industries) Interest Coverage : 6.18 (As of Dec. 2023)

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What is Valmont Industries Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Valmont Industries's Operating Income for the three months ended in Dec. 2023 was $95 Mil. Valmont Industries's Interest Expense for the three months ended in Dec. 2023 was $-15 Mil. Valmont Industries's interest coverage for the quarter that ended in Dec. 2023 was 6.18. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Valmont Industries's Interest Coverage or its related term are showing as below:

VMI' s Interest Coverage Range Over the Past 10 Years
Min: 3.89 Med: 5.95 Max: 9.72
Current: 8.23

VMI's Interest Coverage is ranked better than
58.78% of 393 companies
in the Conglomerates industry
Industry Median: 5.15 vs VMI: 8.23

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Valmont Industries Interest Coverage Historical Data

The historical data trend for Valmont Industries's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Valmont Industries Interest Coverage Chart

Valmont Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

5.68

5.91

6.88

9.11

8.23

Valmont Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															8.28	9.04	8.97	8.97	6.18

Competitive Comparison of Valmont Industries's Interest Coverage

For the Conglomerates subindustry, Valmont Industries's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Valmont Industries's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Valmont Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Valmont Industries's Interest Coverage falls into.

Valmont Industries Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Valmont Industries's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Valmont Industries's Interest Expense was $-57 Mil. Its Operating Income was $468 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,271 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	467.611	/	-56.808
	=	8.23

Valmont Industries's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Valmont Industries's Interest Expense was $-15 Mil. Its Operating Income was $95 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,271 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	94.578	/	-15.314
	=	6.18

The higher the ratio, the stronger the company's Financial Strength is.

Valmont Industries (NYSE:VMI) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Valmont Industries Interest Coverage Related Terms

Thank you for viewing the detailed overview of Valmont Industries's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Valmont Industries (Valmont Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Valmont Industries Inc (NYSE:VMI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

VI1:Germany

Address

15000 Valmont Plaza, Omaha, NE, USA, 68154-5215

Website

https://www.valmont.com

Valmont began in 1946 when founder, Robert B. Daugherty, combined his $5,000 savings with a wholehearted belief that business could and should be done better. From those modest beginnings, the company grew into a global leader, designing and manufacturing highly engineered products and services that support infrastructure development and agricultural productivity. Two primary business segments comprise Valmont: Agriculture and Infrastructure. Valmont have 85 manufacturing facilities in 22 countries, and do business in more than 100 countries across six continents.

Executives

Aaron M Schapper	officer: EVP Infrastructure	VALMONT INDUSTRIES INC, 15000 VALMONT PLAZA, OMAHA NE 68154
Theodor Werner Freye	director	VALMONT INDUSTRIES INC, 15000 VALMONT PLAZA, OMAHA NE 68154
John Timothy Donahue	officer: EVP, Corp/Business Development	VALMONT INDUSTRIES INC, 15000 VALMONT PLAZA, OMAHA NE 68135
Stephen G Kaniewski	officer: President & COO	15000 VALMONT PLAZA, 15000 VALMONT PLAZA, OMAHA NE 68154
Daas Kaj Den	director	EIFELLAAN #3, 5691 GW, SON EN BREUGEL P7 00000
Gene Padgett	officer: CAO	VALMONT INDUSTRIES, INC., 15000 VALMONT PLAZA, OMAHA NE 68154
Timothy Francis	officer: VP Corporate Controller	VALMONT INDUSTRIES, INC., 15000 VALMONT PLAZA, OMAHA NE 68154-5215
Thomas Mitchell Parnell	officer: SVP, Human Resources	VALMONT INDUSTRIES, INC., 15000 VALMONT PLAZA, OMAHA NE 68154
Renee L Campbell	officer: SVP, Investor Relations, Treas	VALMONT INDUSTRIES, 15000 VALMONT PLAZA, OMAHA NE 68154
R Andrew Massey	officer: VP, Legal and Compliance	VALMONT INDUSTRIES INC, 15000 VALMONT PLAZA, OMAHA NE 68154
James B. Milliken	director	ONE VALMONT PLAZA, 13815 FIRST NATIONAL BANK PARKWAY, OMAHA NE 68135
Mogens C Bay	director, officer: Chairman and CEO	15000 VALMONT PLAZA, OMAHA NE 68154
Randt Clark T. Jr.	director	ONE VALMONT PLAZA, 13815 FIRST NATIONAL BANK PARKWAY, OMAHA NE 68154
Joan Robinson-berry	director	VALMONT INDUSTRIES INC, 15000 VALMONT PLAZA, OMAHA NE 68175
Ritu Favre	director	12367 CROSTHWAITE CIRCLE, POWAY CA 92064