Valvoline Inc (VVV)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 367,200 | 302,800 | 295,900 | 280,700 | 247,200 | 244,200 | 218,800 | 197,600 | 220,300 | 240,800 | 249,000 | 260,200 | 240,100 | 328,400 | 347,100 | 412,900 | 485,000 | 422,000 | 436,000 | 415,000 |
| Long-term debt | US$ in thousands | 1,070,000 | 1,125,700 | 951,300 | 1,556,800 | 1,562,300 | 1,567,800 | 1,573,400 | 1,656,100 | 1,525,100 | 1,639,000 | 1,648,000 | 1,662,000 | 1,639,700 | 1,691,000 | 1,719,000 | 1,887,000 | 1,962,000 | 1,953,000 | 2,003,000 | 1,320,000 |
| Total stockholders’ equity | US$ in thousands | 185,600 | 106,500 | 60,100 | 64,800 | 203,200 | 285,400 | 1,372,400 | 289,300 | 306,600 | 225,500 | 200,300 | 167,300 | 134,500 | 23,000 | -56,000 | -55,000 | -76,000 | -188,000 | -237,000 | -196,000 |
| 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% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $367,200K ÷ ($1,070,000K + $185,600K)
= 29.24%
The return on total capital for Valvoline Inc has shown fluctuations over the past 20 quarters. In the most recent quarter ending September 30, 2024, the return on total capital stood at 29.24%, indicating a strong performance in generating profits relative to the total capital employed. This was an improvement from the previous quarter but still below the peak observed in the quarter ending December 31, 2019, where the return on total capital reached 36.92%.
Overall, Valvoline Inc has demonstrated relatively consistent performance in generating returns on the total capital over the period under consideration. The company's ability to efficiently utilize its capital to generate profits is evident, with fluctuations in the ratios likely influenced by various factors such as operational efficiency, investment decisions, and market conditions.
It is important for stakeholders to continue monitoring the return on total capital metric to assess the company's financial health and performance relative to the capital employed. Further analysis and context regarding the company's strategic initiatives, industry trends, and economic conditions will provide a more comprehensive understanding of the dynamics driving the return on total capital for Valvoline Inc.
Peer comparison
Sep 30, 2024