Valvoline Inc (VVV)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 211,500 | 168,100 | 183,800 | 1,369,700 | 1,419,700 | 1,528,500 | 1,565,100 | 419,200 | 424,300 | 435,500 | 434,200 | 420,600 | 420,300 | 373,400 | 335,500 | 330,700 | 317,000 | 222,000 | 228,000 | 228,000 |
| 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 |
| 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% |
September 30, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $211,500K ÷ $2,438,700K
= 8.67%
Valvoline Inc's return on assets (ROA) has shown fluctuations over the past several quarters, ranging from as low as 6.65% to as high as 51.20%. The ROA for the most recent quarter, Sep 30, 2024, stands at 8.67%. This indicates that for every dollar of assets the company holds, it generated a return of 8.67 cents in that quarter.
The significant variations in ROA suggest potential changes in the company's profitability and efficiency in utilizing its assets. The spike in ROA to 50.56% in Dec 31, 2023, could be a result of either extraordinary profitability or a reduction in the asset base during that period.
The declining trend in ROA from 13.37% in Mar 31, 2022, to the current 8.67% could raise concerns about the company's ability to generate earnings from its assets. It would be advisable to delve deeper into the reasons behind this downward trend to understand whether it is due to operational inefficiencies, changes in the asset base, or other external factors impacting the company's performance.
Overall, Valvoline Inc's ROA fluctuates notably, and a thorough analysis of the contributing factors behind these fluctuations would be essential in better assessing the company's financial performance and efficiency.
Peer comparison
Sep 30, 2024