Valvoline Inc (VVV)
Working capital 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 current assets | US$ in thousands | 255,400 | 936,700 | 1,621,100 | 1,037,100 | 1,438,000 |
| Total current liabilities | US$ in thousands | 353,900 | 362,300 | 919,400 | 568,700 | 444,000 |
| Working capital turnover | — | 2.51 | 1.76 | 6.29 | 2.39 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,653,900K ÷ ($255,400K – $353,900K)
= —
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is using its working capital efficiently.
Looking at the trend for Valvoline Inc's working capital turnover over the past five years, we observe fluctuations. In 2024, the working capital turnover ratio was not provided. In 2023, the ratio was 2.51, indicating a moderate level of efficiency in utilizing working capital to generate revenue. This ratio decreased in 2022 to 1.76, suggesting a decrease in efficiency compared to the previous year.
However, there was a significant improvement in 2021, with the ratio jumping to 6.29 - indicating a substantial increase in efficiency in utilizing working capital to generate revenue. This improvement may be attributed to better management of working capital or higher revenue generation relative to working capital levels.
In 2020, there was a slight decrease in the ratio to 2.39, compared to the previous year, but it remained higher than in 2023. This indicates that the efficiency in utilizing working capital to generate revenue was still relatively good.
Overall, the varying levels of working capital turnover ratios over the past five years suggest fluctuations in Valvoline Inc's efficiency in using its working capital to generate revenue. It would be beneficial for the company to further analyze the factors influencing these fluctuations to make informed decisions regarding working capital management strategies.
Peer comparison
Sep 30, 2024