Valvoline Inc (VVV)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 367,200 | 247,200 | 220,300 | 240,100 | 160,200 |
| Total assets | US$ in thousands | 2,438,700 | 2,889,900 | 3,416,800 | 3,191,000 | 3,051,000 |
| Operating ROA | 15.06% | 8.55% | 6.45% | 7.52% | 5.25% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $367,200K ÷ $2,438,700K
= 15.06%
Valvoline Inc's operating return on assets (ROA) has shown a positive trend over the past five years, reflecting the company's efficiency in generating operating income relative to its total assets.
The operating ROA increased from 5.25% in 2020 to 15.06% in 2024, indicating a significant improvement in the company's operational performance. This suggests that Valvoline has been effectively utilizing its assets to generate operating income and improve profitability over the years.
Comparing the operating ROA to industry benchmarks can provide further insights into Valvoline's performance relative to its peers. Additionally, analyzing the components of operating ROA, such as operating profit margin and asset turnover, can help identify specific areas where the company is excelling or may need improvement.
Overall, the increasing trend in Valvoline Inc's operating ROA indicates positive operational efficiency and profitability, which can be a good sign for investors and stakeholders interested in the company's financial performance.
Peer comparison
Sep 30, 2024