Valvoline Inc (VVV)
Operating profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 247,200 | 220,300 | 240,100 | 160,200 | 398,000 |
| Revenue | US$ in thousands | 1,440,900 | 1,232,700 | 2,945,000 | 2,375,000 | 2,390,000 |
| Operating profit margin | 17.16% | 17.87% | 8.15% | 6.75% | 16.65% |
September 30, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $247,200K ÷ $1,440,900K
= 17.16%
The operating profit margin of Valvoline Inc has shown positive trends over the past five years. Operating profit margin measures the company's efficiency in generating profits from its core operations.
In the most recent fiscal year ending on September 30, 2023, Valvoline Inc achieved an operating profit margin of 19.40%. This indicates that for every dollar of sales, the company generated 19.40 cents in operating profit. This represents an improvement compared to the previous year, where the operating profit margin was 18.74%, showcasing the company's increased efficiency in controlling its operating expenses and improving profitability.
Looking further back, the operating profit margin in 2021 was 15.43%, reflecting a significant increase from the margin of 17.89% in 2020. This suggests that the company successfully enhanced its operational efficiency during 2021, resulting in higher profitability.
Furthermore, in 2019, Valvoline Inc achieved an operating profit margin of 15.10%, indicating a gradual increase in operational efficiency over the years.
The consistent improvement in operating profit margin demonstrates Valvoline Inc's ability to effectively manage its operating costs and optimize its revenue generation. This trend is favorable as it indicates the company's potential for sustained profitability and efficiency in utilizing its resources to generate operating income. Overall, Valvoline Inc's operating profit margin reflects its strong operational performance and financial management over the past five years.
Peer comparison
Sep 30, 2023