Valvoline Inc (VVV)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,653,900 | 1,440,900 | 1,232,700 | 2,945,000 | 2,375,000 |
| Property, plant and equipment | US$ in thousands | 1,188,700 | 818,300 | 668,600 | 817,000 | 613,000 |
| Fixed asset turnover | 1.39 | 1.76 | 1.84 | 3.60 | 3.87 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,653,900K ÷ $1,188,700K
= 1.39
Valvoline Inc's fixed asset turnover has experienced a downward trend over the past five years, declining from 3.87 in 2020 to 1.39 in 2024. This indicates that the company's ability to generate sales from its fixed assets has weakened over this period. A lower fixed asset turnover ratio may suggest inefficiencies in asset utilization or a decrease in revenue generation relative to the value of fixed assets. It is essential for Valvoline Inc to closely monitor and assess the management of its fixed assets to improve operational efficiency and potentially enhance its revenue generation capabilities in the future.
Peer comparison
Sep 30, 2024