Valvoline Inc (VVV)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 37.30% | 37.99% | 38.02% | 37.83% | 37.79% | 37.82% | 25.51% | 19.23% | 15.69% | 15.58% | 16.42% | 17.50% | 17.71% | 20.40% | 25.06% | 30.56% | 36.66% | 35.26% | 34.68% | 34.34% |
| Operating profit margin | 22.13% | 19.28% | 19.39% | 18.95% | 17.16% | 17.58% | 11.11% | 7.87% | 7.26% | 8.04% | 8.79% | 9.83% | 9.84% | 11.74% | 13.76% | 17.20% | 20.60% | 18.10% | 17.96% | 17.01% |
| Pretax margin | 16.91% | 14.89% | 16.75% | 97.12% | 101.10% | 111.22% | 79.79% | 16.87% | 15.12% | 14.85% | 16.30% | 17.41% | 19.67% | 17.31% | 17.23% | 18.03% | 17.54% | 12.48% | 12.27% | 11.11% |
| Net profit margin | 12.75% | 10.70% | 12.05% | 92.45% | 98.53% | 110.05% | 79.46% | 16.69% | 13.97% | 14.54% | 15.34% | 15.89% | 17.22% | 13.35% | 13.30% | 13.78% | 13.47% | 9.52% | 9.39% | 9.34% |
Valvoline Inc's profitability ratios have shown fluctuations over the past few quarters. The gross profit margin has remained relatively stable around the mid to high 30% range, indicating the company's ability to efficiently manage its production costs.
The operating profit margin has also shown consistency, albeit lower than the gross profit margin, hovering between 10% to 20%. This suggests that Valvoline is effectively controlling its operating expenses to generate profits from its core business operations.
However, the pretax margin and net profit margin exhibit more variability. In some quarters, those margins spiked significantly, possibly due to extraordinary or one-time events impacting the bottom line. Nonetheless, across the periods, these margins have generally shown a positive trend, indicating Valvoline's overall ability to generate profits after considering all expenses and taxes.
Overall, Valvoline's profitability ratios reflect a mix of stability and fluctuations, suggesting the company's competent management of costs and operations, despite some variability in net profit margins due to unique factors in certain quarters.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 8.67% | 7.08% | 6.65% | 50.56% | 49.13% | 51.20% | 36.56% | 11.80% | 12.42% | 13.01% | 13.37% | 13.21% | 13.17% | 12.25% | 11.49% | 10.48% | 10.39% | 7.49% | 7.82% | 9.93% |
| Return on total capital | 29.24% | 24.57% | 29.26% | 17.31% | 14.00% | 13.18% | 7.43% | 10.16% | 12.03% | 12.91% | 13.47% | 14.22% | 13.53% | 19.16% | 20.87% | 22.54% | 25.72% | 23.91% | 24.69% | 36.92% |
| Return on equity (ROE) | 113.95% | 157.84% | 305.82% | 2,113.73% | 698.67% | 535.56% | 114.04% | 144.90% | 138.39% | 193.13% | 216.77% | 251.40% | 312.49% | 1,623.48% | — | — | — | — | — | — |
Valvoline Inc's profitability ratios show a mixed performance over the analyzed periods. The Operating Return on Assets (Operating ROA) has shown a general increasing trend, indicating that the company has been generating more operating income per dollar of assets. The Return on Assets (ROA) has been relatively volatile, with a significant spike in December 2023, which could be attributed to one-time events or accounting adjustments.
Return on Total Capital has also been variable but generally increasing, suggesting that the company is generating higher returns on both debt and equity capital employed. Return on Equity (ROE) reflects substantial fluctuations, with an exceptionally high figure in March 2024 and negative values in the latest period, indicating extreme variability in the profitability generated for shareholders.
Overall, while Valvoline Inc has shown improvements in operating efficiency and return on total capital, the fluctuations in ROA and especially ROE warrant further investigation to understand the underlying reasons behind the drastic changes in profitability.