Valvoline Inc (VVV)
Debt-to-equity 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-equity ratio | 5.77 | 10.57 | 15.83 | 24.02 | 7.69 | 5.49 | 1.15 | 5.72 | 4.97 | 7.27 | 8.23 | 9.93 | 12.19 | 73.52 | — | — | — | — | — | — |
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 of Valvoline Inc has shown fluctuations over the period indicated in the table. The ratio indicates the proportion of debt financing relative to equity financing in the company's capital structure.
From December 2019 to March 2020, the ratio increased significantly from 8.23 to 24.02, suggesting a higher reliance on debt for funding. This high ratio might indicate increased financial risk due to higher debt levels compared to equity.
Subsequently, the ratio decreased to 15.83 in March 2024, signifying a moderate improvement in the debt-to-equity structure. However, the ratio remained relatively high indicating continued reliance on debt financing.
It is notable that in March 2021, the debt-to-equity ratio spiked to an exceptionally high level of 73.52, which could indicate potential financial distress due to the high proportion of debt compared to equity. This anomaly should be investigated to understand the reasons behind such a dramatic increase.
Overall, the trend of the debt-to-equity ratio for Valvoline Inc shows variations over time, reflecting changes in the company's capital structure and financial leverage. Further analysis would be required to assess the impact of these fluctuations on the company's financial health and risk profile.
Peer comparison
Sep 30, 2024