Valvoline Inc (VVV)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.85 | 0.91 | 0.94 | 0.96 | 0.88 | 0.85 | 0.53 | 0.85 | 0.83 | 0.88 | 0.89 | 0.91 | 0.92 | 0.99 | 1.03 | 1.03 | 1.04 | 1.11 | 1.13 | 1.17 |
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 shown fluctuations over the past few years. From December 2021 to March 2024, the ratio has steadily increased from 0.91 to 0.94 and eventually reached its peak at 1.03 in March 2021. This upward trend indicates a higher proportion of debt in the company's capital structure during this period.
However, there have been instances of variability within this trend. For example, in March 2023, the ratio significantly dropped to 0.53, indicating a lower level of debt relative to total capital for that period. This sudden decrease may have been due to various factors such as debt repayment, capital restructuring, or increased equity issuance.
Overall, the increasing trend in the debt-to-capital ratio for Valvoline Inc from December 2021 to March 2024 suggests a reliance on debt financing to support the company's operations and growth initiatives. Investors and stakeholders may monitor this ratio closely to assess the company's leverage and financial risk profile.
Peer comparison
Sep 30, 2024