Valvoline Inc (VVV)
Pretax margin
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 280,600 | 1,456,800 | 459,000 | 480,200 | 370,000 |
| Revenue | US$ in thousands | 1,653,900 | 1,440,900 | 1,232,700 | 2,945,000 | 2,375,000 |
| Pretax margin | 16.97% | 101.10% | 37.24% | 16.31% | 15.58% |
September 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $280,600K ÷ $1,653,900K
= 16.97%
The pretax margin of Valvoline Inc has exhibited significant variability over the past five years, ranging from a low of 15.58% in Sep 30, 2020 to a high of 101.10% in Sep 30, 2023. The pretax margin reflects the company's ability to generate profits before accounting for taxes relative to its total revenue. The sharp increase in pretax margin in 2023 may be attributed to various factors such as increased efficiency, cost management, or potentially one-time gains.
It is important to note that the unusually high pretax margin in 2023 of 101.10% may be an outlier or result of specific circumstances that do not reflect sustainable profitability. The pretax margin of 16.97% in Sep 30, 2024 indicates a more normalized level of profitability for the company, although it is higher than the margins observed in the preceding years.
Overall, fluctuations in pretax margin should be further analyzed in conjunction with other financial metrics to assess the overall financial health and performance of Valvoline Inc.
Peer comparison
Sep 30, 2024