Valvoline Inc (VVV)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,481,500 | 1,440,900 | 1,388,900 | 1,969,700 | 2,511,200 | 3,036,400 | 2,996,200 | 2,831,200 | 2,646,200 | 2,441,200 | 2,798,000 | 2,522,000 | 2,400,000 | 2,354,000 | 2,331,000 | 2,428,000 | 2,440,000 | 2,390,000 | 2,355,000 | 2,319,000 |
| Receivables | US$ in thousands | 83,500 | 81,300 | 71,900 | 61,100 | 56,900 | 66,100 | 583,000 | 563,000 | 530,000 | 65,300 | 490,000 | 448,000 | 430,000 | 433,000 | 396,000 | 352,000 | 395,000 | 401,000 | 423,000 | 368,000 |
| Receivables turnover | 17.74 | 17.72 | 19.32 | 32.24 | 44.13 | 45.94 | 5.14 | 5.03 | 4.99 | 37.38 | 5.71 | 5.63 | 5.58 | 5.44 | 5.89 | 6.90 | 6.18 | 5.96 | 5.57 | 6.30 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,481,500K ÷ $83,500K
= 17.74
The receivables turnover ratio for Valvoline Inc has fluctuated over the past eight quarters. In Q1 2024, the receivables turnover was 17.77, which indicates that, on average, Valvoline collected its accounts receivable approximately 17.77 times during that quarter. This figure was relatively stable compared to the previous quarter at 17.76.
However, in Q3 2023, the receivables turnover ratio was recorded at -5.72, which is an unusual and concerning figure. A negative ratio suggests that there may have been an issue with the collection of accounts receivable in that quarter. It could indicate delays or difficulties in collecting outstanding payments.
The receivables turnover improved in Q2 2023 to 2.77, indicating an increase in the collection efficiency compared to the previous quarter. Subsequently, in Q1 2023, the ratio was 12.49, suggesting a high turnover of receivables during that period.
Overall, there have been fluctuations in Valvoline Inc's receivables turnover ratio over the past eight quarters, with some quarters showing efficient collection of accounts receivable and others indicating potential challenges. It is essential for the company to maintain a healthy receivables turnover ratio to ensure effective management of its accounts receivable and cash flow.
Peer comparison
Dec 31, 2023