Valvoline Inc (VVV)
Payables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,351,100 | 1,168,500 | 1,042,000 | 2,422,000 | 1,877,000 |
| Payables | US$ in thousands | 117,400 | 118,700 | 45,000 | 38,600 | 189,000 |
| Payables turnover | 11.51 | 9.84 | 23.16 | 62.75 | 9.93 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,351,100K ÷ $117,400K
= 11.51
The payables turnover ratio of Valvoline Inc has fluctuated over the past five years. In 2024, the payables turnover ratio was 11.51, which indicates that the company's payables turnover improved compared to the previous year. This suggests that Valvoline Inc is managing its accounts payable more efficiently, as it takes approximately 11.51 times to pay off its accounts payable during the year.
In 2023, the payables turnover ratio was 9.84, showing a slight decrease from the previous year. However, the ratio still indicates that the company is effectively managing its payables. The significant increase in the payables turnover ratio to 23.16 in 2022 indicates a notable improvement in the company's ability to pay off its accounts payable efficiently.
In contrast, the exceptionally high payables turnover ratio of 62.75 in 2021 suggests that Valvoline Inc was able to pay off its accounts payable more than 62 times within the year. This could be an anomaly or indicate a specific financial or operational strategy employed during that year.
Lastly, in 2020, the payables turnover ratio was 9.93, showing a similar level of efficiency in managing accounts payable compared to 2023. Overall, the fluctuation in the payables turnover ratio over the years reflects variations in Valvoline Inc's management of its accounts payable and working capital efficiency.
Peer comparison
Sep 30, 2024