Valvoline Inc (VVV)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,481,500 | 1,440,900 | 1,388,900 | 1,969,700 | 2,511,200 | 3,036,400 | 2,996,200 | 2,831,200 | 2,646,200 | 2,441,200 | 2,798,000 | 2,522,000 | 2,400,000 | 2,354,000 | 2,331,000 | 2,428,000 | 2,440,000 | 2,390,000 | 2,355,000 | 2,319,000 |
| Property, plant and equipment | US$ in thousands | 841,500 | 818,300 | 761,600 | 722,500 | 693,300 | 668,600 | 874,000 | 843,000 | 824,000 | 817,000 | 773,000 | 741,000 | 713,000 | 613,000 | 559,000 | 509,000 | 479,000 | 498,000 | 455,000 | 441,000 |
| Fixed asset turnover | 1.76 | 1.76 | 1.82 | 2.73 | 3.62 | 4.54 | 3.43 | 3.36 | 3.21 | 2.99 | 3.62 | 3.40 | 3.37 | 3.84 | 4.17 | 4.77 | 5.09 | 4.80 | 5.18 | 5.26 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,481,500K ÷ $841,500K
= 1.76
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
Based on the data provided for Valvoline Inc, the fixed asset turnover ratio varied over the quarters. In Q1 2024 and Q4 2023, the company maintained a consistent fixed asset turnover ratio of 1.76, indicating stable efficiency in generating revenue from its fixed assets during those periods.
However, there was a significant decline in Q3 2023, with a negative fixed asset turnover ratio of -0.54, which may suggest operational inefficiencies or asset impairment during that quarter. This negative ratio implies that the company may not have effectively utilized its fixed assets to generate sales, resulting in a potential concerning performance.
In Q2 2023 and Q1 2023, the fixed asset turnover ratio improved to 0.23 and 1.03, respectively, indicating a better utilization of fixed assets compared to the previous quarter. This improvement suggests that Valvoline Inc may have optimized its fixed assets to generate more revenue during these periods.
The highest fixed asset turnover ratios were observed in Q3 and Q4 of 2022, with ratios of 4.05 and 4.00, respectively. These exceptionally high ratios indicate that Valvoline Inc was extremely efficient in generating revenue from its fixed assets during these quarters, reflecting strong operational performance and effective asset utilization.
Overall, the trend in Valvoline Inc's fixed asset turnover ratio shows fluctuations over the quarters, highlighting the company's varying levels of efficiency in utilizing its fixed assets to generate sales. It is essential for the company to monitor and improve its fixed asset turnover ratio to ensure optimal utilization of its assets and maximize revenue generation.
Peer comparison
Dec 31, 2023