Valvoline Inc (VVV)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 398,000 | 390,000 | 390,000 |
| Long-term debt | US$ in thousands | 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 | 1,327,000 | 1,334,000 | 1,318,000 |
| Total stockholders’ equity | US$ in thousands | 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 | -257,800 | -252,000 | -298,000 |
| Return on total capital | 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% | 37.22% | 36.04% | 38.24% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $280,700K ÷ ($1,556,800K + $64,800K)
= 17.31%
The return on total capital for Valvoline Inc has shown some variability over the past eight quarters. In Q1 2024, the return on total capital was 17.52%, which was higher compared to the previous quarter at 15.65% in Q4 2023. However, there was a significant decrease in Q3 2023 to 2.32%, followed by a slight increase in Q2 2023 to 3.52%. Prior to that, the returns were 7.48% in Q1 2023 and 11.62% in Q4 2022.
The highest returns on total capital were observed in Q3 and Q2 of 2022, at 26.58% and 26.12% respectively. This indicates that the company was able to generate higher levels of return on the capital invested during those periods.
Overall, the return on total capital trend for Valvoline Inc shows some fluctuations, but it is essential for the company to consistently monitor and manage its capital allocation to ensure sustainable and profitable growth.
Peer comparison
Dec 31, 2023