Valvoline Inc (VVV)
Working capital turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,659,000 | 1,570,900 | 1,525,700 | 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 |
| Total current assets | US$ in thousands | 255,400 | 256,400 | 701,400 | 710,600 | 936,700 | 1,087,100 | 2,458,100 | 1,701,400 | 1,621,100 | 1,051,000 | 1,016,000 | 1,001,000 | 1,037,100 | 1,016,000 | 968,000 | 1,214,000 | 1,438,000 | 1,379,000 | 1,384,000 | 794,000 |
| Total current liabilities | US$ in thousands | 353,900 | 351,400 | 963,700 | 317,400 | 362,300 | 405,900 | 621,600 | 924,400 | 919,400 | 641,000 | 585,000 | 541,000 | 568,700 | 507,000 | 448,000 | 506,000 | 444,000 | 432,000 | 401,000 | 421,000 |
| Working capital turnover | — | — | — | 3.77 | 2.51 | 2.04 | 1.07 | 3.23 | 4.33 | 7.31 | 6.57 | 5.75 | 5.21 | 5.50 | 4.85 | 3.39 | 2.37 | 2.46 | 2.47 | 6.54 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,659,000K ÷ ($255,400K – $353,900K)
= —
The working capital turnover ratio for Valvoline Inc has shown fluctuations over the past several quarters. The trend indicates an improvement in efficiency in managing working capital.
The ratio, which measures how efficiently the company is using its working capital to generate sales, has increased significantly from 1.07 in March 2023 to 7.31 in June 2022, indicating a substantial increase in sales relative to its working capital during that period.
Although the ratio slightly declined in subsequent quarters, it remained relatively high compared to previous years, averaging around 5 in 2021 and 2022. This suggests that Valvoline has been effectively utilizing its working capital to support its operations and generate revenue.
Overall, the upward trend in the working capital turnover ratio reflects improvements in the company's operational efficiency and ability to generate sales using its current assets. This trend is generally seen as positive as it indicates effective management of working capital resources.
Peer comparison
Sep 30, 2024