Valvoline Inc (VVV)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 618,800 | 596,800 | 580,000 | 560,500 | 544,500 | 525,300 | 502,400 | 483,000 | 476,400 | 466,700 | 464,900 | 463,100 | 432,300 | 570,900 | 631,900 | 733,400 | 863,000 | 822,000 | 842,000 | 838,000 |
| Revenue (ttm) | US$ in thousands | 1,659,000 | 1,570,900 | 1,525,700 | 1,481,500 | 1,440,900 | 1,388,900 | 1,969,700 | 2,511,200 | 3,036,400 | 2,996,200 | 2,831,200 | 2,646,200 | 2,441,200 | 2,798,000 | 2,522,000 | 2,400,000 | 2,354,000 | 2,331,000 | 2,428,000 | 2,440,000 |
| Gross profit margin | 37.30% | 37.99% | 38.02% | 37.83% | 37.79% | 37.82% | 25.51% | 19.23% | 15.69% | 15.58% | 16.42% | 17.50% | 17.71% | 20.40% | 25.06% | 30.56% | 36.66% | 35.26% | 34.68% | 34.34% |
September 30, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $618,800K ÷ $1,659,000K
= 37.30%
Valvoline Inc's gross profit margin has shown varying trends over the past few years. In recent quarters, the gross profit margin has been relatively stable, ranging from 37.30% to 38.02%. This indicates that the company is effectively managing its production costs and generating a consistent level of profit from its core operations.
However, it is worth noting that there was a substantial increase in the gross profit margin from the first quarter of 2023 to the second quarter of 2023, jumping from 25.51% to 37.82%. This significant improvement may have been due to specific cost-saving initiatives or changes in the product mix that positively impacted profitability.
Looking at the broader trend, the gross profit margin has generally been on an upward trajectory since the end of 2021, following a period of lower margins in 2020 and early 2021. This improvement suggests that Valvoline Inc has been successful in enhancing its operational efficiency and maintaining a healthier balance between revenue and cost of goods sold.
Overall, Valvoline Inc's gross profit margin performance reflects a company that has been able to navigate market challenges and optimize its profitability in recent quarters. Continued monitoring of this metric will be essential to assess the company's ability to sustain and potentially improve its margins in the future.
Peer comparison
Sep 30, 2024