Valvoline Inc (VVV)
Return on assets (ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,419,700 | 424,300 | 420,300 | 316,600 | 208,000 |
| Total assets | US$ in thousands | 2,889,900 | 3,416,800 | 3,191,000 | 3,051,000 | 2,064,000 |
| ROA | 49.13% | 12.42% | 13.17% | 10.38% | 10.08% |
September 30, 2023 calculation
ROA = Net income ÷ Total assets
= $1,419,700K ÷ $2,889,900K
= 49.13%
Valvoline Inc's return on assets (ROA) measures the company's profitability in relation to its total assets. A higher ROA indicates that the company is more efficient in using its assets to generate earnings.
In the financial year ending September 30, 2023, Valvoline Inc's ROA surged to 49.13%, marking a significant increase from the 12.42% reported in the previous year. This remarkable improvement indicates a substantial boost in the company's ability to generate profit from its assets.
Comparing the 2023 ROA to the figures from earlier years, it is evident that Valvoline Inc's performance has been on an upward trajectory. In 2022, the ROA stood at 12.42%, an improvement from the 13.16% in 2021. Notably, the ROA has steadily increased over the years, demonstrating the company's consistent ability to enhance its profitability relative to its asset base.
This upward trend in ROA suggests that Valvoline Inc has been efficiently utilizing its assets to generate higher profits. It is essential to monitor this trend in subsequent periods to determine if the company can sustain or further improve its ROA, as it indicates the effectiveness of management in utilizing assets to generate earnings.
Peer comparison
Sep 30, 2023