Valvoline Inc (VVV)
Debt-to-equity 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-equity ratio | 5.77 | 7.69 | 4.97 | 12.19 | — |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,070,000K ÷ $185,600K
= 5.77
The debt-to-equity ratio for Valvoline Inc has shown fluctuations over the past five years. As of September 30, 2024, the ratio stands at 5.77, indicating that the company has a higher proportion of debt relative to equity in its capital structure. Compared to the previous years, there has been a slight decrease from 7.69 in 2023 and a significant decrease from 12.19 in 2021, suggesting a potential improvement in the company's leverage position.
It is also noteworthy that the debt-to-equity ratio was not reported for September 30, 2020. The trend in the debt-to-equity ratio suggests that Valvoline Inc has been actively managing its debt levels relative to equity, possibly by reducing debt or increasing equity investments.
Overall, a lower debt-to-equity ratio signifies a lower financial risk for the company as it implies a more conservative leverage position. However, it is important to consider industry benchmarks and peer comparisons to gain a better understanding of Valvoline Inc's capital structure and financial health.
Peer comparison
Sep 30, 2024