Valvoline Inc (VVV)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 367,200 | 302,800 | 295,900 | 280,700 | 247,200 | 244,200 | 218,800 | 197,600 | 220,300 | 240,800 | 249,000 | 260,200 | 240,100 | 328,400 | 347,100 | 412,900 | 485,000 | 422,000 | 436,000 | 415,000 |
| Total assets | US$ in thousands | 2,438,700 | 2,375,600 | 2,763,000 | 2,709,300 | 2,889,900 | 2,985,500 | 4,280,400 | 3,551,500 | 3,416,800 | 3,348,000 | 3,248,000 | 3,183,000 | 3,191,000 | 3,049,000 | 2,921,000 | 3,156,000 | 3,051,000 | 2,963,000 | 2,917,000 | 2,297,000 |
| Operating ROA | 15.06% | 12.75% | 10.71% | 10.36% | 8.55% | 8.18% | 5.11% | 5.56% | 6.45% | 7.19% | 7.67% | 8.17% | 7.52% | 10.77% | 11.88% | 13.08% | 15.90% | 14.24% | 14.95% | 18.07% |
September 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $367,200K ÷ $2,438,700K
= 15.06%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating profits from its assets. In the case of Valvoline Inc, the trend of Operating ROA over the past years shows fluctuation but generally reflects an improving operational efficiency.
The Operating ROA increased from 5.56% in December 2022 to 15.06% in September 2024, indicating a significant improvement in the company's ability to generate operating profits relative to its assets during this period. This upward trend suggests that Valvoline Inc has been able to enhance its operational performance and optimize the utilization of its assets effectively.
However, it is essential to note that there were fluctuations in the Operating ROA throughout the period under consideration. For instance, the ratio decreased from 18.07% in March 2022 to 5.11% in March 2023, before gradually increasing again. These fluctuations could be due to various factors such as changes in business operations, asset efficiency, or economic conditions.
Overall, the increasing trend of Operating ROA for Valvoline Inc indicates improving profitability and efficiency in utilizing its assets for generating operating income. It suggests that the company has been successful in managing its operations effectively to drive profitability and maximize returns from its asset base.
Peer comparison
Sep 30, 2024