Valvoline Inc (VVV)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 86,400 | 81,300 | 66,100 | 65,300 | 433,000 |
| Total current liabilities | US$ in thousands | 353,900 | 362,300 | 919,400 | 568,700 | 444,000 |
| Quick ratio | 0.44 | 2.31 | 0.10 | 0.52 | 2.69 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($68,300K
+ $0K
+ $86,400K)
÷ $353,900K
= 0.44
The quick ratio of Valvoline Inc has shown significant fluctuations over the past five years. In 2024, the quick ratio stands at 0.44, indicating that the company may face challenges in meeting its short-term obligations with its most liquid assets. This sharp decrease from the previous year's ratio of 2.31 suggests a potential liquidity strain or a shift in the composition of current assets.
The quick ratio of 0.44 in 2024 is significantly lower compared to 2020 and 2023 when it was 2.69 and 2.31, respectively. This decline may signal a decrease in the company's ability to cover its current liabilities with its quick assets, such as cash and accounts receivable, in the short term.
Furthermore, the quick ratio of 0.44 in 2024 is also notably lower than the industry average, reflecting a potential liquidity risk that might impact Valvoline's ability to meet its immediate financial obligations efficiently.
Overall, the decreasing trend in Valvoline Inc's quick ratio over the years indicates a potential liquidity concern that warrants further investigation and monitoring by investors and stakeholders.
Peer comparison
Sep 30, 2024