Valvoline Inc (VVV)
Fixed asset turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,659,000 | 1,570,900 | 1,525,700 | 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 |
| Property, plant and equipment | US$ in thousands | 1,188,700 | 927,200 | 877,900 | 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 |
| Fixed asset turnover | 1.40 | 1.69 | 1.74 | 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 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,659,000K ÷ $1,188,700K
= 1.40
The fixed asset turnover ratio for Valvoline Inc has shown fluctuations over the past few quarters. The ratio measures the efficiency with which the company generates sales revenue from its investment in fixed assets.
From the data provided, we can observe that the fixed asset turnover ratio has generally been on an upward trend from December 2019 to March 2024. The ratio increased from 3.37 in December 2019 to 4.54 in September 2022, indicating an improvement in the company's ability to generate sales from its fixed assets over this period.
However, there was a significant spike in the fixed asset turnover ratio in March 2023 (2.73), followed by a sharp decline in the subsequent quarters. This could indicate a potential irregularity or anomaly in the company's business operations or asset management during that period.
Overall, the company has demonstrated a generally positive trend in utilizing its fixed assets efficiently to drive sales growth. Further analysis may be necessary to better understand the factors contributing to the fluctuations in the fixed asset turnover ratio observed over the quarters.
Peer comparison
Sep 30, 2024