Valvoline Inc (VVV)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 15.56 | 9.84 | -4.24 | 1.23 | 12.57 | 23.71 | 11.30 | 11.94 | 12.14 | 62.51 | 8.03 | 8.37 | 8.84 | 7.24 | 7.42 | 7.60 | 9.50 | 8.34 | 11.57 | 11.31 | |
| Number of days of payables | days | 23.46 | 37.08 | — | 296.28 | 29.04 | 15.39 | 32.30 | 30.58 | 30.07 | 5.84 | 45.47 | 43.63 | 41.31 | 50.43 | 49.18 | 48.01 | 38.43 | 43.77 | 31.55 | 32.27 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 15.56
= 23.46
In order to calculate the number of days of payables for Valvoline Inc, we need the following additional financial information:
- Accounts Payable for each quarter
- Cost of Goods Sold (COGS) for each quarter
Once we have this information, we can compute the number of days of payables by using the following formula:
Number of days of payables = (Accounts Payable / COGS) * Number of days in the period
The number of days of payables is a crucial indicator of how long a company takes to pay its suppliers. A higher number indicates that the company is taking a longer time to settle its payables, which may suggest possible liquidity issues or strained vendor relationships. On the other hand, a lower number implies an efficient management of payables, potentially enhancing cash flow and supplier rapport. It is essential to assess this ratio in conjunction with other financial metrics to gain a comprehensive understanding of Valvoline Inc's financial health and operational efficiency.
Peer comparison
Dec 31, 2023