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Valmont Industries VMI LIFO Adjustment — Operating Income

Discontinued — last reported Q4 '19

Similar metrics at other companies

PPG Industries logo
PPGFIFO adjustment
$181M+7.1%
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VMCIncrease (decrease) in cost of revenues due to the effect of the LIFO liquidation
-$1.15M+9.8%
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AAMaterial Reconciling Items — Segment Reporting Information Impact Of Last In First Out
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U-Haul Holding logo
UHAL.BOperating Segments — Inventory LIFO Reserve Period Charge
U-Haul Holding logo
UHAL.BOperating Segments — Inventory LIFO Reserve Effect On Income Net
U-Haul Holding logo
UHAL.BMoving And Storage Consolidations — Inventory LIFO Reserve Period Charge

Other financials

Income statement

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Revenue$1.0B+6.2%
Gross profit$316.9M+8.9%
Operating income$155.6M+21.3%
Net income$108.0M+23.8%
EPS (diluted)$5.51+27.5%

Balance sheet

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Cash & equivalents$160.2M-13.1%
Total debt$921.3M+6.9%
Total equity$1.7B+2.7%
Total assets$3.4B+1.8%

Cash flow

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Operating cash flow$103.5M+58.9%
CapEx$34.6M+14.0%
Free cash flow$68.9M+97.9%

Valuation

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Market cap$11.07B+36.4%
Enterprise value$11.83B+33.8%
P/E29.8×+6.5×
P/S2.7×+0.7×

Profitability

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Gross margin30.4%+0.2pp
Operating margin10.6%-2.2pp
Net margin8.9%+0.4pp
FCF margin8.3%-4.5pp

Returns & leverage

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Return on equity22.4%-0.5pp
Debt / equity0.5×0.0×
Current ratio2.4×+0.1×

Where this comes from

Reported directly by Valmont Industries in its filing.

Tagged under the XBRL concept us-gaap:OperatingIncomeLoss.

The official record: Valmont Industries’s 10-K, filed February 26, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does LIFO adjustment — operating income mean?
The accounting adjustment that removes the impact of LIFO inventory valuation to show the segment's operating performance based on current replacement costs.
How do you interpret LIFO adjustment — operating income?
An increase in the LIFO adjustment expense typically signals rising input costs for the segment, while a decrease or credit suggests stabilizing or falling material costs. Large adjustments indicate that the segment's reported operating margins are significantly influenced by historical inventory cost layers rather than current market pricing.
How does LIFO adjustment — operating income compare across companies?
Peers using LIFO accounting in industrial or manufacturing sectors will report similar adjustments, though the magnitude depends heavily on the specific inventory turnover rates and the volatility of raw material prices like steel or zinc.