Valvoline Inc (VVV)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.85 | 0.88 | 0.83 | 0.92 | 1.04 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,070,000K ÷ ($1,070,000K + $185,600K)
= 0.85
The debt-to-capital ratio of Valvoline Inc has exhibited some fluctuations over the past five years. It decreased from 1.04 in September 2020 to 0.83 in September 2022, before increasing again to 0.92 in September 2021 and eventually settling at 0.85 in September 2024. This ratio indicates that, on average, Valvoline has maintained a relatively high level of debt compared to its capital structure over the period analyzed. While the downward trend from 2020 to 2022 suggests a potential deleveraging strategy, the subsequent increase in 2023 and 2024 may raise concerns about the company's increasing reliance on debt financing. Further contextual analysis and comparison with industry peers are recommended for a more comprehensive assessment of Valvoline's debt management strategy.
Peer comparison
Sep 30, 2024