Valvoline Inc (VVV)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,653,900 | 1,440,900 | 1,232,700 | 2,945,000 | 2,375,000 |
| Receivables | US$ in thousands | 86,400 | 81,300 | 66,100 | 65,300 | 433,000 |
| Receivables turnover | 19.14 | 17.72 | 18.65 | 45.10 | 5.48 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,653,900K ÷ $86,400K
= 19.14
The receivables turnover for Valvoline Inc has shown some fluctuations over the past five years. In 2024, the receivables turnover ratio was 19.14, which indicates that the company collected its accounts receivables approximately 19 times during the fiscal year. This represents an improvement compared to the previous year, where the ratio was 17.72.
It is important to note that in 2023, there was a significant decrease in receivables turnover to 17.72, possibly indicating inefficiencies in collecting receivables during that period. The ratio then improved in 2024, suggesting better management of accounts receivables.
In contrast, the receivables turnover was exceptionally high in 2021 at 45.10, reflecting a very efficient collection of accounts receivables during that year. This could be a result of effective credit policies or prompt customer payments. However, the ratio decreased notably in 2022 to 18.65 before increasing again in 2023.
The drastic decline in receivables turnover in 2020 to 5.48 may indicate challenges in collecting receivables efficiently, possibly due to economic uncertainties or changes in customer payment behavior during that period.
Overall, the trend in Valvoline Inc's receivables turnover shows variations over the years, with some years demonstrating strong efficiency in collecting receivables while others experiencing challenges. Monitoring this ratio can provide insights into the company's liquidity and effectiveness in managing its accounts receivables.
Peer comparison
Sep 30, 2024