Valvoline Inc (VVV)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 208,000 | 226,000 | 225,000 |
| 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 |
| ROA | 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% | 10.08% | 11.30% | 11.76% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $1,369,700K ÷ $2,709,300K
= 50.56%
Valvoline Inc's return on assets (ROA) has shown fluctuation over the past eight quarters. The ROA ranged from a low of 11.80% in Q1 2023 to a high of 51.18% in Q3 2023. The company's ROA trended upwards from Q1 2023 to Q3 2023, indicating an improvement in the efficiency of utilizing its assets to generate profits. However, in Q4 2023 and Q1 2024, the ROA declined slightly but remained relatively high compared to previous quarters.
Overall, Valvoline Inc has demonstrated a strong ability to generate profits relative to its total assets, with the ROA consistently above 10% in the past eight quarters. This signifies effective management of assets to generate earnings, which is a positive indicator for investors and stakeholders. It is important for the company to continue monitoring its ROA and implement sound asset management strategies to sustain its profitability in the long term.
Peer comparison
Dec 31, 2023