Valvoline Inc (VVV)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 255,400 | 936,700 | 1,621,100 | 1,037,100 | 1,438,000 |
| Total current liabilities | US$ in thousands | 353,900 | 362,300 | 919,400 | 568,700 | 444,000 |
| Current ratio | 0.72 | 2.59 | 1.76 | 1.82 | 3.24 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $255,400K ÷ $353,900K
= 0.72
The current ratio of Valvoline Inc has shown a declining trend over the past five years. The current ratio was 3.24 in 2020, indicating a strong ability to cover its short-term obligations with current assets. However, this ratio has steadily decreased to 1.82 in 2021, 1.76 in 2022, 2.59 in 2023, and further down to 0.72 in 2024.
A current ratio below 1 suggests that the company may have difficulties meeting its short-term obligations with its current assets alone. Valvoline Inc's current ratio of 0.72 in 2024 indicates a potential liquidity concern, as the company may not have enough current assets to cover its current liabilities. This downward trend in the current ratio should be closely monitored, as it may indicate potential liquidity issues that need to be addressed by the company.
Peer comparison
Sep 30, 2024