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Vulcan Materials Co Financial Strength

: 5 (As of Jun. 2022)
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Vulcan Materials Co has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Vulcan Materials Co's Interest Coverage for the quarter that ended in Jun. 2022 was 7.90. Vulcan Materials Co's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.60. As of today, Vulcan Materials Co's Altman Z-Score is 3.03.


Competitive Comparison

For the Building Materials subindustry, Vulcan Materials Co's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Vulcan Materials Co's Financial Strength falls into.



Vulcan Materials Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Vulcan Materials Co's Interest Expense for the months ended in Jun. 2022 was $-39 Mil. Its Operating Income for the months ended in Jun. 2022 was $306 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $4,519 Mil.

Vulcan Materials Co's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*305.6/-38.7
=7.90

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Vulcan Materials Co's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(176.5 + 4518.8) / 7817.2
=0.60

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Vulcan Materials Co has a Z-score of 3.03, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.03 is strong.

* 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.


Vulcan Materials Co  (NYSE:VMC) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Vulcan Materials Co has the Financial Strength Rank of 5.


Vulcan Materials Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Vulcan Materials Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Vulcan Materials Co Business Description

Vulcan Materials Co logo
Traded in Other Exchanges
Address
1200 Urban Center Drive, Birmingham, AL, USA, 35242
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 2021, Vulcan sold 222.9 million tons of aggregates, 11.4 million tons of asphalt mix, and 5.6 million cubic yards of ready-mix. As of Dec. 31, 2021, the company had nearly 16 billion tons of aggregates reserves.
Executives
Hicks Darren L. officer: Chief Human Resources Officer 1200 URBAN CENTER DRIVE BIRMINGHAM AL 35242
Pruitt Ronnie A officer: Senior Vice President C/O U.S. CONCRETE, INC. 331 N. MAIN STREET EULESS TX 76039
Willis George director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Franklin Denson N. Iii officer: SVP & General Counsel 1200 URBAN CENTER DRIVE BIRMINGHAM AL 35242
Anderson Melissa H. director ALBEMARLE CORPORATION 4250 CONGRESS ST. SUITE 900 CHARLOTTE NC 28209
Wilson D Michael director C/O INGEVITY CORPORATION 5255 VIRGINIA AVENUE NORTH CHARLESTON SC 29406
Wood Suzanne H officer: SVP & Chief Financial Officer 1200 URBAN CENTER DRIVE BIRMINGHAM AL 35242
Pigg Randy L. officer: Vice President and Controller 1200 URBAN CENTER DRIVE BIRMINGHAM AL 35242
Quirk Kathleen L director 1615 POYDRAS STREET NEW ORLEANS LA 70112
Bass Stanley G officer: Chief Growth Officer 1200 URBAN CENTER DRIVE BIRMINGHAM AL 35242
Baker Thompson S Ii officer: Senior Vice President 200 W. FORSYTH STREET 7TH FLOOR JACKSONVILLE FL 32202
Steiner David P director 1001 FANNIN ST STE 4000 HOUSTON TX 77002
Thorpe S Martin officer: President, Mideast Division 1200 URBAN CENTER DRIVE BIRMINGHAM AL 35242
Alvord Christina M officer: President, So and Gulf Co Div. 1200 URBAN CENTER DRIVE BIRMINGHAM AL 35242
Khan Ejaz A officer: VP, Controller & CIO VULCAN MATERIALS CO 1200 URBAN CENTER DR BIRMINGHAM AL 35242

Vulcan Materials Co Headlines

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