Valvoline Inc (VVV)
Total asset 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 |
| Total assets | US$ in thousands | 2,438,700 | 2,889,900 | 3,416,800 | 3,191,000 | 3,051,000 |
| Total asset turnover | 0.68 | 0.50 | 0.36 | 0.92 | 0.78 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,653,900K ÷ $2,438,700K
= 0.68
The total asset turnover ratio measures the efficiency of a company in generating sales revenue from its total assets. A higher ratio indicates better asset utilization and revenue generation.
Valvoline Inc's total asset turnover has fluctuated over the past five years. In fiscal year 2024, the ratio stood at 0.68, reflecting an increase from the previous year's 0.50. This suggests that Valvoline has improved its ability to generate sales from its total assets.
Comparing with fiscal year 2022 and 2021, where the total asset turnover was 0.36 and 0.92 respectively, it is evident that there were significant fluctuations. In 2021, Valvoline's total asset turnover was exceptionally high, indicating strong sales generated from total assets. However, this dropped in the subsequent year but has since shown a positive trend.
When looking back to 2020, a total asset turnover of 0.78 was reported. In the current fiscal year, despite the improvement from the previous year, the ratio is still lower than the 2020 level.
Overall, Valvoline Inc's total asset turnover has shown variability over the past five years, with fluctuations that suggest changes in the company's efficiency in generating sales revenue from its total assets. Further analysis and consideration of industry benchmarks may provide additional insights into Valvoline's performance in this aspect.
Peer comparison
Sep 30, 2024