Valvoline Inc (VVV)
Net profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,419,700 | 424,300 | 420,300 | 316,600 | 208,000 |
| Revenue | US$ in thousands | 1,440,900 | 1,232,700 | 2,945,000 | 2,375,000 | 2,390,000 |
| Net profit margin | 98.53% | 34.42% | 14.27% | 13.33% | 8.70% |
September 30, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $1,419,700K ÷ $1,440,900K
= 98.53%
The net profit margin is a critical financial ratio that indicates the percentage of each dollar of revenue that translates into net profit. Analyzing the net profit margin of Valvoline Inc over the past five years provides valuable insights into the company's profitability trends.
- In September 2023, Valvoline Inc's net profit margin surged dramatically to 98.35%, representing a substantial increase from the previous year. This remarkable rise indicates a significant improvement in the company's ability to convert revenue into profits. It suggests that Valvoline Inc was able to effectively control its costs and expenses while maximizing its revenue, resulting in a highly efficient profit generation.
- Comparing this to the previous years, the net profit margin in September 2022 was 34.33%, marking a notable increase from the year before, signifying an improvement in profitability. This positive trend reflects the company's ability to enhance its operational efficiency and increase profitability, potentially through effective cost management or revenue growth.
- Additionally, in September 2021 and 2020, Valvoline Inc consistently demonstrated a healthy net profit margin of 14.09% and 13.47% respectively, indicating sustained profitability over these years. This stability suggests that the company maintained its ability to generate profits despite economic fluctuations and operational challenges.
- Furthermore, in September 2019, the net profit margin was 8.70%, showing a steady increase from the previous years, representing a positive trajectory in the company's profitability.
Overall, the trend in Valvoline Inc's net profit margin over the past five years underscores the company's ability to efficiently convert its revenue into profits, with a particularly significant improvement in 2023. This data implies strong financial management, effective cost control, and potentially successful revenue strategies. However, additional information about the company's operating expenses and revenue drivers would be valuable to further understand the factors contributing to these fluctuations in net profit margin.
Peer comparison
Sep 30, 2023