Valvoline Inc (VVV)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 797,000 | 801,000 | 733,000 |
| Total current liabilities | US$ in thousands | 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 | 423,000 | 412,000 | 390,000 |
| 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 | 6.39 | 6.05 | 6.76 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,481,500K ÷ ($710,600K – $317,400K)
= 3.77
The working capital turnover of Valvoline Inc has been fluctuating over the past eight quarters. In Q1 2024, the working capital turnover ratio was 3.77, indicating that the company generated $3.77 in revenues for every dollar of working capital invested during that period. This represents a significant increase compared to the previous quarter Q4 2023, where the ratio was 2.51.
The working capital turnover ratio turned negative in Q3 2023, reaching -0.60. This negative ratio suggests that the company may have been inefficient in utilizing its working capital to generate revenue during that quarter. However, this was followed by a slight improvement in Q2 2023, where the ratio increased to 0.09.
In Q1 2023 and Q4 2022, the working capital turnover ratios were 0.91 and 1.76, respectively, showing a moderate level of efficiency in using working capital to generate revenue. The ratio peaked in Q3 2022 at 8.62, indicating a high level of efficiency in generating revenue with the working capital available.
Overall, the working capital turnover of Valvoline Inc has shown fluctuations, with periods of both high and low efficiency in utilizing working capital to generate revenue. It is important for the company to closely monitor and manage its working capital to improve overall operational efficiency and profitability.
Peer comparison
Dec 31, 2023