Vulcan Materials Co (Vulcan Materials Co) Interest Coverage

: 5.87 (As of Dec. 2023)

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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. Vulcan Materials Co's Operating Income for the three months ended in Dec. 2023 was $317 Mil. Vulcan Materials Co's Interest Expense for the three months ended in Dec. 2023 was $-54 Mil. Vulcan Materials Co's interest coverage for the quarter that ended in Dec. 2023 was 5.87. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Vulcan Materials Co's Interest Coverage or its related term are showing as below:

VMC' s Interest Coverage Range Over the Past 10 Years
Min: 1.22 Med: 5.64 Max: 7.03
Current: 7.03

VMC's Interest Coverage is ranked better than
50.33% of 306 companies
in the Building Materials industry
Industry Median: 6.905 vs VMC: 7.03

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

Vulcan Materials Co Interest Coverage Historical Data

The historical data trend for Vulcan Materials Co'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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Vulcan Materials Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

6.56

6.00

5.96

7.03

Vulcan Materials Co 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															4.32	3.79	9.30	9.50	5.87

Competitive Comparison

For the Building Materials subindustry, Vulcan Materials Co'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.

Vulcan Materials Co Interest Coverage Distribution

For the Building Materials industry and Basic Materials sector, Vulcan Materials Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Vulcan Materials Co's Interest Coverage falls into.

Vulcan Materials Co 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.

Vulcan Materials Co'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, Vulcan Materials Co's Interest Expense was $-196 Mil. Its Operating Income was $1,379 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,385 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1379.3	/	-196.1
	=	7.03

Vulcan Materials Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Vulcan Materials Co's Interest Expense was $-54 Mil. Its Operating Income was $317 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,385 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	316.5	/	-53.9
	=	5.87

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

Vulcan Materials Co (NYSE:VMC) 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 .

Vulcan Materials Co Interest Coverage Related Terms

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Vulcan Materials Co (Vulcan Materials Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Vulcan Materials Co (NYSE:VMC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

V1MC34:Brazil

Address

1200 Urban Center Drive, Birmingham, AL, USA, 35242

Website

https://www.vulcanmaterials.com

Vulcan Materials is the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). Its largest markets include Texas, California, Virginia, Tennessee, Georgia, Florida, North Carolina, and Alabama. In 2022, Vulcan sold 263.4 million tons of aggregates, 12.2 million tons of asphalt mix, and 10.5 million cubic yards of ready-mix. As of Dec. 31, 2022, the company had nearly 16 billion tons of aggregates reserves.

Executives

Stanley G Bass	officer: Chief Growth Officer	1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
David P Clements	officer: Senior Vice President, Central	1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Melissa H. Anderson	director	ALBEMARLE CORPORATION, 4250 CONGRESS ST. SUITE 900, CHARLOTTE NC 28209
J Thomas Hill	officer: Sr VP - South Region	1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Randy L. Pigg	officer: Vice President and Controller	1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Mary Andrews Carlisle	officer: SVP and CFO	1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Lydia H Kennard	director	155 N LAKE AVE, PASADENA CA 91101
Darren L. Hicks	officer: Chief Human Resources Officer	1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Perkins Jerry F Jr	officer: General Counsel and Secetary	1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Jason P Teter	officer: President, S&GC Division	1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Ronnie A Pruitt	officer: Senior Vice President	C/O U.S. CONCRETE, INC., 331 N. MAIN STREET, EULESS TX 76039
David P Steiner	director	1001 FANNIN ST, STE 4000, HOUSTON TX 77002
George Willis	director	55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Franklin Denson N. Iii	officer: SVP & General Counsel	1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Michael R Mills	officer: Senior Vice President and Gene	1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242