Valvoline Inc (VVV)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,351,100 | 1,275,400 | 1,235,700 | 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 |
| Payables | US$ in thousands | 117,400 | 107,700 | 118,800 | 77,200 | 118,700 | 96,400 | 85,800 | 46,600 | 45,000 | 265,000 | 238,000 | 218,000 | 38,600 | 216,000 | 180,000 | 158,000 | 189,000 | 178,000 | 186,000 | 153,000 |
| Payables turnover | 11.51 | 11.84 | 10.40 | 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 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,351,100K ÷ $117,400K
= 11.51
The payables turnover ratio measures how efficiently a company is managing its accounts payable by examining how many times a company pays off its suppliers during a specific period. A higher payables turnover ratio indicates that the company is quickly paying off its creditors, which could signify strong financial health and good relationships with suppliers.
Analyzing Valvoline Inc's payables turnover over the past few quarters, we observe fluctuations in the ratio. In the most recent quarter, ending September 30, 2024, the payables turnover ratio was 11.51, which indicates that Valvoline Inc paid off its accounts payable approximately 11.51 times during the quarter. This value is in line with the company's historical trend of consistently maintaining a relatively high payables turnover ratio.
However, it is important to note that the payables turnover ratio experienced negative values in some previous quarters, such as -4.24 in June 2023. This negative value could be an anomaly or a result of specific events impacting the company's accounts payable management during that period.
Overall, Valvoline Inc's payables turnover ratio has shown variability over time, with some quarters exhibiting exceptionally high turnover rates. It suggests that the company has been effectively managing its payables and maintaining healthy relationships with its suppliers. Continued monitoring of the payables turnover ratio will be essential to assess Valvoline Inc's ongoing financial performance and liquidity position.
Peer comparison
Sep 30, 2024