Valvoline Inc (VVV)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.44 | 0.47 | 0.34 | 0.57 | 0.54 | 0.53 | 0.37 | 0.47 | 0.45 | 0.49 | 0.51 | 0.52 | 0.51 | 0.55 | 0.59 | 0.60 | 0.64 | 0.66 | 0.69 | 0.57 |
| 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 |
| 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 | — | — | — | — | — | — |
| Financial leverage ratio | 13.14 | 22.31 | 45.97 | 41.81 | 14.22 | 10.46 | 3.12 | 12.28 | 11.14 | 14.85 | 16.22 | 19.03 | 23.72 | 132.57 | — | — | — | — | — | — |
The solvency ratios of Valvoline Inc show fluctuations over the past several quarters. The debt-to-assets ratio has varied between 0.34 and 0.69, indicating the proportion of the company's assets financed by debt. The ratio experienced a peak in December 2019 and a trough in March 2024, indicating shifts in the company's debt management.
The debt-to-capital ratio has ranged from 0.53 to 1.17, reflecting the percentage of capital structure funded by debt. The ratio has shown volatility, reaching its highest point in December 2019 and fluctuating since then. This suggests changes in the company's capital structure and debt levels over time.
The debt-to-equity ratio exhibited significant variability, ranging from 1.15 to 73.52. The ratio surged in March 2021 and declined thereafter, but a lack of data in recent quarters limits a comprehensive trend analysis. The high ratios in some periods signify a heavy reliance on debt for financing, impacting the company's equity position.
The financial leverage ratio also displayed fluctuations, ranging from 3.12 to 132.57. The ratio spiked in March 2021 and has since declined, indicating shifts in the company's financial risk and leverage levels. Further data is needed to assess the long-term trend in financial leverage.
Overall, the solvency ratios of Valvoline Inc reflect a mixed picture of debt management and financial risk, indicating the company's changing capital structure and debt burden over the analyzed period.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.67 | 4.67 | 6.63 | 6.62 | 5.20 | 4.46 | 3.17 | 2.68 | 3.06 | 3.30 | 3.51 | 2.41 | 2.16 | 3.57 | 4.57 | 18.77 | 161.67 | 20.10 | 11.18 | 7.28 |
The interest coverage ratio of Valvoline Inc has fluctuated over the periods provided. The ratio measures the company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
From December 2019 to December 2020, there was a significant increase in the interest coverage ratio from 7.28 to 18.77, indicating an improvement in the company's ability to cover its interest expenses. However, this was followed by a sharp increase to 161.67 in September 2020, suggesting a substantial increase in profitability or decrease in interest expenses during that period.
Subsequently, the interest coverage ratio fluctuated between 2.16 and 6.63 for the following quarters, showing some volatility in Valvoline's ability to cover its interest payments. Overall, the company's interest coverage ratio has generally remained above 2, indicating that Valvoline has been able to cover its interest obligations comfortably.
It would be essential for investors and stakeholders to closely monitor Valvoline's interest coverage ratio to ensure the company maintains a healthy financial position and is able to meet its debt obligations in the future.