Valvoline Inc (VVV)
Quick 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 | 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 | — | — | — |
| Receivables | US$ in thousands | 86,400 | 97,500 | 109,600 | 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 |
| 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 |
| Quick ratio | 0.44 | 0.46 | 0.63 | 1.97 | 2.31 | 2.52 | 3.86 | 0.09 | 0.10 | 1.06 | 1.16 | 1.26 | 0.52 | 1.42 | 1.56 | 1.89 | 2.69 | 2.66 | 2.81 | 1.32 |
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 fluctuations over the analyzed period. The quick ratio measures the ability of a company to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates potential liquidity issues.
The quick ratio of Valvoline Inc was consistently above 1 from March 2020 to March 2023, indicating a healthy liquidity position during that period. However, there was a significant drop in the quick ratio to 0.09 in December 2022, suggesting a potential liquidity strain at that time.
Subsequently, the quick ratio improved in the following quarters, with a noticeable increase to 3.86 in March 2023, indicating a substantial improvement in short-term liquidity. However, from December 2023 to September 2024, the quick ratio decreased gradually to 0.44, implying a potential decrease in the company's ability to meet its short-term obligations using its quick assets.
Overall, the trend in Valvoline Inc's quick ratio indicates fluctuations in its liquidity position over the periods analyzed, with varying levels of ability to cover short-term liabilities with liquid assets. It would be important to further investigate the reasons behind these fluctuations to assess the company's overall financial health and liquidity management.
Peer comparison
Sep 30, 2024