Valvoline Inc (VVV)
Quick 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 | 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 | — |
| Receivables | US$ in thousands | 83,500 | 81,300 | 71,900 | 61,100 | 56,900 | 66,100 | 583,000 | 563,000 | 530,000 | 65,300 | 490,000 | 448,000 | 430,000 | 433,000 | 396,000 | 352,000 | 395,000 | 401,000 | 423,000 | 368,000 |
| 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 |
| Quick ratio | 1.97 | 2.31 | 2.52 | 3.86 | 0.09 | 0.10 | 1.06 | 1.16 | 1.26 | 0.52 | 1.41 | 1.55 | 1.89 | 2.69 | 2.66 | 2.81 | 1.32 | 1.32 | 1.33 | 1.24 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($420,700K
+ $119,700K
+ $83,500K)
÷ $317,400K
= 1.97
The quick ratio of Valvoline Inc has shown significant fluctuations over the past eight quarters. The ratio was at its highest in Q2 2023 at 3.90, indicating a strong ability to meet short-term obligations without relying on inventory. This was followed by a notable decline in Q1 2023 and Q4 2022, where the quick ratio dropped to 0.13 and 0.14, respectively, signaling potential liquidity challenges.
However, the quick ratio improved in the subsequent quarters, reaching 2.14 in Q1 2024 and 2.49 in Q4 2023. These higher ratios suggest a better ability to cover current liabilities with liquid assets. Overall, the quick ratio of Valvoline Inc has shown variability but has displayed a recent trend towards improved liquidity position. Further analysis and monitoring of the company's liquidity management practices may be warranted to ensure sustained financial stability.
Peer comparison
Dec 31, 2023