Valvoline Inc (VVV)
Gross profit margin
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 618,800 | 544,500 | 476,400 | 432,300 | 301,000 |
| Revenue | US$ in thousands | 1,653,900 | 1,440,900 | 1,232,700 | 2,945,000 | 2,375,000 |
| Gross profit margin | 37.41% | 37.79% | 38.65% | 14.68% | 12.67% |
September 30, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $618,800K ÷ $1,653,900K
= 37.41%
The gross profit margin of Valvoline Inc has shown a fluctuating trend over the past five years. In the most recent fiscal year ending on September 30, 2024, the gross profit margin stood at 37.41%, slightly lower than the previous year's margin of 37.79%. However, it is still notably higher compared to the margins in the preceding years, indicating an improvement in the company's ability to generate profits from its core operations.
The significant increase in gross profit margin from 2021 to 2022, rising from 14.68% to 38.65%, suggests that Valvoline Inc implemented successful strategies to enhance its profitability during that period. This substantial improvement continued into the following year, albeit at a slightly lower rate, demonstrating the company's sustained focus on optimizing its cost structure and maximizing efficiency.
Compared to the margins in 2020 and 2019, which were 12.67% and 14.68% respectively, the recent levels indicate a positive trend of margin expansion. This upward trajectory signifies Valvoline Inc's ability to effectively manage its production costs and pricing strategies to drive higher profitability.
Overall, the trend in Valvoline Inc's gross profit margin reflects positive developments in its operational efficiency and profitability levels over the past five years, showcasing the company's commitment to enhancing its financial performance.
Peer comparison
Sep 30, 2024