Valvoline Inc (VVV)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 420,700 | 409,100 | 526,700 | 2,334,500 | 21,000 | 23,400 | 25,500 | 28,500 | 42,800 | 122,600 | 226,000 | 247,000 | 527,000 | 639,700 | 751,000 | 774,000 | 162,000 | 159,000 | 126,000 | 114,000 |
| Short-term investments | US$ in thousands | 119,700 | 347,500 | 424,100 | 2,100 | 4,000 | 0 | 72,500 | 89,500 | 109,200 | 107,400 | — | — | — | 120,300 | — | — | — | — | 1,000 | — |
| 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 |
| Cash ratio | 1.70 | 2.09 | 2.34 | 3.76 | 0.03 | 0.03 | 0.15 | 0.20 | 0.28 | 0.40 | 0.45 | 0.55 | 1.04 | 1.71 | 1.74 | 1.93 | 0.38 | 0.38 | 0.31 | 0.29 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($420,700K
+ $119,700K)
÷ $317,400K
= 1.70
The cash ratio of Valvoline Inc has been quite volatile over the past few quarters. In Q1 2024, the cash ratio was 1.88, indicating that the company had $1.88 in cash and cash equivalents for every dollar of current liabilities. This was a decrease from the previous quarter (Q4 2023) when the cash ratio was 2.27.
The highest cash ratio observed in the given data was in Q2 2023 at 3.80, suggesting a strong liquidity position at that time. However, this was followed by a sharp decline in Q1 2023, where the cash ratio dropped to 0.06, indicating a significant decrease in available cash relative to current liabilities.
Overall, it is important to closely monitor Valvoline Inc's cash ratio trend to assess its liquidity position and ability to meet short-term obligations. The company may need to focus on managing its cash and cash equivalents efficiently to maintain a healthy liquidity position in the future.
Peer comparison
Dec 31, 2023