Valvoline Inc (VVV)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,201,300 | 1,168,500 | -408,500 | 105,700 | 585,700 | 1,067,000 | 2,995,000 | 2,841,000 | 2,646,000 | 2,413,000 | 1,734,000 | 1,506,000 | 1,396,000 | 1,368,000 | 1,321,000 | 1,414,000 | 1,453,000 | 1,426,000 | 1,886,000 | 1,742,000 |
| Inventory | US$ in thousands | 31,500 | 33,300 | 34,100 | 33,500 | 31,200 | 29,400 | 306,000 | 276,000 | 264,000 | 27,400 | 247,000 | 218,000 | 213,000 | 199,000 | 189,000 | 209,000 | 194,000 | 194,000 | 200,000 | 192,000 |
| Inventory turnover | 38.14 | 35.09 | -11.98 | 3.16 | 18.77 | 36.29 | 9.79 | 10.29 | 10.02 | 88.07 | 7.02 | 6.91 | 6.55 | 6.87 | 6.99 | 6.77 | 7.49 | 7.35 | 9.43 | 9.07 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,201,300K ÷ $31,500K
= 38.14
Valvoline Inc's inventory turnover has shown fluctuations over the past eight quarters. The trend indicates a general inconsistency in managing its inventory efficiently. In Q1 2024 and Q4 2023, the inventory turnover was relatively high at 29.32 and 27.00, respectively, suggesting a quick turnover of inventory during those periods. However, a significant decline was observed in Q3 2023 with a negative inventory turnover of -15.07, indicating potential inventory management challenges.
The negative inventory turnover in Q3 2023 is a cause for concern as it implies that the company's sales were insufficient to cover the cost of goods sold. This could lead to excess and obsolete inventory levels, impacting the company's profitability and liquidity.
Overall, Valvoline Inc's inventory turnover has displayed volatility, with fluctuations in the efficiency of managing inventory levels. It is essential for the company to closely monitor and improve its inventory management practices to ensure optimal utilization of resources and sustainable business operations.
Peer comparison
Dec 31, 2023
Dec 31, 2023