Valvoline Inc (VVV)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 68,300 | 409,100 | 23,400 | 122,600 | 639,700 |
| Short-term investments | US$ in thousands | 0 | 347,500 | 0 | 107,400 | 120,300 |
| Total current liabilities | US$ in thousands | 353,900 | 362,300 | 919,400 | 568,700 | 444,000 |
| Cash ratio | 0.19 | 2.09 | 0.03 | 0.40 | 1.71 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($68,300K
+ $0K)
÷ $353,900K
= 0.19
The cash ratio of Valvoline Inc has fluctuated significantly over the past five years. As of September 30, 2024, the cash ratio stands at 0.19. This indicates that for every dollar of current liabilities, Valvoline Inc has $0.19 in cash and cash equivalents available to cover those obligations.
Compared to the previous years, the cash ratio in 2024 is significantly lower than the ratio of 2.09 in 2023, 0.03 in 2022, 0.40 in 2021, and 1.71 in 2020. The substantial decrease in the cash ratio from 2023 to 2024 suggests a potential liquidity challenge for the company, as it has less readily available cash to meet its short-term obligations.
Overall, the current cash ratio of Valvoline Inc raises concerns about its liquidity position, and may indicate a need for the company to reassess its cash management strategies to ensure it can meet its short-term financial commitments effectively.
Peer comparison
Sep 30, 2024