Valvoline Inc (VVV)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.41% | 37.79% | 38.65% | 14.68% | 12.67% |
| Operating profit margin | 22.20% | 17.16% | 17.87% | 8.15% | 6.75% |
| Pretax margin | 16.97% | 101.10% | 37.24% | 16.31% | 15.58% |
| Net profit margin | 12.79% | 98.53% | 34.42% | 14.27% | 13.33% |
Valvoline Inc has shown a consistent improvement in its profitability ratios over the years, as seen through key margins. The gross profit margin has been relatively stable from 2020 to 2024, indicating efficient control of production costs. The operating profit margin demonstrates a positive trend, with a notable increase over the period, suggesting effective management of operating expenses.
The pretax margin experienced a significant anomaly in 2023, showing an unusually high value, which may have been influenced by non-recurring events or accounting adjustments. In contrast, the net profit margin has exhibited a steady growth trajectory, reflecting the company's ability to generate more profit from its total revenue.
Overall, Valvoline Inc's profitability ratios suggest a positive financial performance, characterized by improving operational efficiency and increasing profitability over the analyzed period.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.06% | 8.55% | 6.45% | 7.52% | 5.25% |
| Return on assets (ROA) | 8.67% | 49.13% | 12.42% | 13.17% | 10.38% |
| Return on total capital | 29.24% | 14.00% | 12.03% | 13.53% | 8.49% |
| Return on equity (ROE) | 113.95% | 698.67% | 138.39% | 312.49% | — |
Valvoline Inc's profitability ratios demonstrate a consistent and generally positive trend over the five-year period from 2020 to 2024. The company's Operating return on assets (Operating ROA) has shown a steady growth, increasing from 5.25% in 2020 to 15.06% in 2024, indicating that the company is generating more profit from its assets through its core operations.
The Return on assets (ROA) also displays a positive trend, albeit with some fluctuations. Valvoline Inc managed to achieve a ROA of 8.67% in 2024, up from 10.38% in 2020. This ratio signifies the company's ability to generate earnings from its total assets, with the 2023 outlier possibly due to specific financial events that year.
Return on total capital increased significantly from 8.49% in 2020 to 29.24% in 2024, indicating that the company is efficiently utilizing both equity and debt to generate returns for its investors. This increase suggests that Valvoline Inc's capital allocation strategies have been effective in driving profitability.
The Return on equity (ROE) has shown remarkable growth over the period, with a substantial increase from 312.49% in 2021 to 113.95% in 2024. This strong performance indicates that the company is delivering high returns to its shareholders relative to their equity investment.
Overall, Valvoline Inc's profitability ratios suggest that the company has been effectively managing its assets and capital structure to generate increasing returns for its stakeholders over the years.