Valvoline Inc (VVV)
Total asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,440,900 | 1,232,700 | 2,945,000 | 2,375,000 | 2,390,000 |
| Total assets | US$ in thousands | 2,889,900 | 3,416,800 | 3,191,000 | 3,051,000 | 2,064,000 |
| Total asset turnover | 0.50 | 0.36 | 0.92 | 0.78 | 1.16 |
September 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,440,900K ÷ $2,889,900K
= 0.50
Total asset turnover is an important financial ratio that measures a company's efficiency in generating sales revenue from its total assets. A higher turnover ratio indicates that the company is using its assets more efficiently to generate sales.
In the case of Valvoline Inc, the total asset turnover has fluctuated over the past five years. In 2023, the total asset turnover was 0.50, slightly higher than the previous year. This indicates that Valvoline generated $0.50 in sales for every dollar of assets held during the year.
Comparing this to previous years, the total asset turnover has decreased significantly from 2021 when it was 0.93, indicating that the company was less efficient in generating sales from its assets in 2023. This decrease may be attributed to various factors, such as changes in the company's business operations, asset utilization, or sales volume.
Furthermore, compared to 2020 and 2019, the total asset turnover has also declined, indicating a consistent trend of decreased asset efficiency in generating sales revenue.
This trend could raise concerns about Valvoline's asset utilization efficiency and its ability to generate sales from its asset base effectively. It may be essential for stakeholders and investors to further investigate the reasons behind this decline and assess the company's future prospects for asset optimization and revenue generation.
Peer comparison
Sep 30, 2023