Valvoline Inc (VVV)
Operating return on assets (Operating ROA)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 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 | 398,000 | 390,000 | 390,000 |
| Total assets | US$ in thousands | 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 | 2,064,000 | 2,000,000 | 1,914,000 |
| Operating ROA | 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% | 19.28% | 19.50% | 20.38% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $280,700K ÷ $2,709,300K
= 10.36%
The operating return on assets (operating ROA) of Valvoline Inc fluctuated over the past eight quarters. In Q1 2024, the operating ROA stood at 10.61%, showing an increase from the previous quarter's 9.69%. This improvement suggests that the company generated a higher operating profit relative to its total assets during the period.
Comparing to historical data, the operating ROA in Q1 2024 is significantly higher than the lower points seen in Q3 and Q2 of 2023, where the ratios were at 2.47% and 2.96% respectively. The peaks in Q3 and Q2 of 2022 at 13.98% and 13.95% indicate strong performance in utilizing assets efficiently to generate operating income during those quarters.
Overall, the trend in Valvoline Inc's operating ROA indicates some variability in asset utilization efficiency, with periods of both lower and higher profitability. The company may want to continue monitoring and improving its operating ROA to ensure optimal performance and value creation.
Peer comparison
Dec 31, 2023