Valvoline Inc (VVV)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 68,300 | 65,700 | 494,500 | 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 |
| Short-term investments | US$ in thousands | 0 | 0 | 0 | 119,700 | 347,500 | 424,100 | 2,100 | 4,000 | 0 | 72,500 | 89,500 | 109,200 | 107,400 | 5,000 | 5,000 | — | 120,300 | — | — | — |
| 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 |
| Cash ratio | 0.19 | 0.19 | 0.51 | 1.70 | 2.09 | 2.34 | 3.76 | 0.03 | 0.03 | 0.15 | 0.20 | 0.28 | 0.40 | 0.46 | 0.56 | 1.04 | 1.71 | 1.74 | 1.93 | 0.38 |
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 over the last several quarters. As of September 30, 2024, the cash ratio stood at 0.19, similar to the ratio in the previous quarter. However, this current ratio is significantly lower compared to previous periods, notably in March 2024 where it was 0.51.
The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position, as it implies the company has more cash on hand relative to its current liabilities.
Valvoline's cash ratio has experienced significant volatility, suggesting fluctuations in the company's cash position relative to its short-term obligations. The ratios ranging from 0.03 to 3.76 over the past eight quarters indicate varying levels of liquidity management.
It would be important for Valvoline to closely monitor its cash position and manage its liquidity effectively to ensure it can meet its short-term financial obligations as they become due. An analysis of the factors driving these fluctuations in the cash ratio would be crucial for the company's management to make informed decisions regarding its cash management strategies.
Peer comparison
Sep 30, 2024