Valvoline Inc (VVV)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 367,200 | 247,200 | 220,300 | 240,100 | 160,200 |
| Long-term debt | US$ in thousands | 1,070,000 | 1,562,300 | 1,525,100 | 1,639,700 | 1,962,000 |
| Total stockholders’ equity | US$ in thousands | 185,600 | 203,200 | 306,600 | 134,500 | -76,000 |
| Return on total capital | 29.24% | 14.00% | 12.03% | 13.53% | 8.49% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $367,200K ÷ ($1,070,000K + $185,600K)
= 29.24%
Valvoline Inc's return on total capital has shown a positive trend over the past five years, with a significant increase from 8.49% in 2020 to 29.24% in 2024. This indicates that the company is generating a higher return for every dollar of total capital employed in its operations. The consistent improvement in this ratio suggests that Valvoline is effectively utilizing its capital resources to generate profits, which is a positive indicator of operational efficiency and financial performance. Overall, the increasing trend in return on total capital demonstrates the company's ability to deliver value to its investors and stakeholders.
Peer comparison
Sep 30, 2024