Valvoline Inc (VVV)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 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 | 1.24 | 1.23 | 1.29 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,556,800K ÷ ($1,556,800K + $64,800K)
= 0.96
The debt-to-capital ratio of Valvoline Inc has varied over the past eight quarters. In Q1 2024, the ratio was 0.96, indicating that their debt accounted for 96% of their total capital. This represents a significant increase compared to the previous quarter (Q4 2023) where the ratio stood at 0.89.
Looking further back, the trend in the debt-to-capital ratio demonstrates some fluctuation. The ratio was at its lowest point in Q2 2023 at 0.54, suggesting a relatively lower reliance on debt funding at that time. However, in subsequent quarters, the ratio increased again before leveling off around the range of 0.85 to 0.89 in the latter half of 2023 and the beginning of 2024.
Overall, the higher debt-to-capital ratio observed in Q1 2024 may indicate an increased reliance on debt financing by Valvoline Inc during that period. It is important to closely monitor this ratio in future quarters to assess the company's financial leverage and risk profile.
Peer comparison
Dec 31, 2023