Valvoline Inc key statistics and ratios

In fiscal 2025, Valvoline Inc had return on equity of 80.4%, an operating margin of 22.8%, debt equal to 319.2% of equity and a current ratio of 0.70. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Valvoline Inc: financial ratios, annual
Fiscal year	2015Sept 2015	2016Sept 2016	2017Sept 2017	2018Sept 2018	2019Sept 2019	2020Sept 2020	2021Sept 2021	2022Sept 2022	2023Sept 2023	2024Sept 2024	2025Sept 2025	LTMJun 2026
Gross margin	34.8%	38.8%	37.2%	35.3%	33.9%	41.4%	41.7%	38.5%	37.7%	38.2%	38.5%	38.3%
Operating margin	16.4%	20.5%	18.9%	17.3%	16.7%	22.0%	23.1%	17.8%	17.1%	22.7%	22.8%	15.3%
Net margin	10.0%	14.2%	14.6%	7.3%	8.7%	43.5%	40.5%	34.3%	98.4%	13.1%	12.3%	5.2%
Free-cash-flow margin	14.5%	12.7%	−9.5%	9.9%	9.1%	38.2%	29.0%	12.3%	−15.3%	2.5%	2.2%	6.9%
Return on equity	31.8%	190.2%	—	—	—	—	—	192.4%	—	108.8%	80.4%	26.9%
Return on assets	—	15.0%	16.3%	8.8%	10.6%	12.4%	13.5%	12.8%	45.0%	7.9%	8.2%	3.3%
Asset turnover	—	1.06	1.11	1.21	1.22	0.28	0.33	0.37	0.46	0.61	0.67	0.64
Current ratio	—	1.82	1.65	1.76	1.88	3.24	1.82	1.76	2.59	0.72	0.70	0.70
Debt to equity	0.0%	—	—	—	—	—	>999%	554.5%	786.5%	592.3%	319.2%	384.4%
Effective tax rate	34.0%	35.2%	38.0%	50.0%	21.5%	43.4%	23.0%	24.1%	15.7%	24.4%	26.5%	41.2%
R&D as % of revenue	0.6%	0.7%	0.6%	0.6%	0.5%	1.8%	1.4%	—	—	—	—	—
SG&A as % of revenue	17.7%	18.9%	19.0%	18.8%	18.8%	24.4%	21.6%	19.8%	18.3%	18.8%	20.5%	21.0%
Capital spending as % of revenue	2.3%	3.4%	3.3%	4.1%	4.5%	12.9%	9.9%	10.7%	12.5%	13.9%	15.2%	13.8%
Free cash flow ÷ net income	145.4%	89.7%	−65.1%	136.7%	104.3%	87.7%	71.6%	35.9%	−15.6%	19.2%	18.0%	133.3%
Dividends ÷ net income	0.0%	0.0%	13.2%	34.9%	38.5%	26.6%	21.6%	21.0%	1.5%	0.0%	0.0%	—
Dividends and buybacks ÷ free cash flow	0.0%	0.0%	—	168.7%	36.9%	51.9%	72.4%	152.3%	—	557.2%	202.1%	0.0%

US$ thousands unless shown otherwise. Fiscal quarters.

Valvoline Inc: financial ratios, quarterly
Quarter	2024 Q4Sept 2024	2025 Q1Dec 2024	2025 Q2Mar 2025	2025 Q3Jun 2025	2025 Q4Sept 2025	2026 Q1Dec 2025	2026 Q2Mar 2026	2026 Q3Jun 2026
Gross margin	39.1%	36.9%	37.3%	40.5%	39.1%	37.4%	37.1%	39.5%
Operating margin	30.9%	34.7%	16.6%	21.6%	18.6%	4.0%	17.1%	20.6%
Net margin	21.2%	22.1%	9.3%	12.9%	5.5%	−7.1%	8.9%	11.8%
Free-cash-flow margin	6.9%	−3.0%	−1.1%	7.3%	5.1%	1.6%	7.5%	12.4%
Current ratio	0.72	0.70	0.73	0.73	0.70	0.70	0.73	0.70
Debt to equity	589.3%	449.6%	432.5%	344.3%	317.3%	541.2%	469.5%	384.4%
SG&A as % of revenue	18.6%	19.4%	20.7%	18.9%	22.7%	23.1%	19.6%	18.9%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

2 of 5 checks passed · June 30, 2026

What it owns · $3.5bn

Short-term assets $284mLonger-term assets $3.2bn

What it owes, and who funded it · $822m

Short-term liabilities $405mShareholders' equity $417m

Short-term assets cover short-term liabilities $284m of assets due within a year against $405m of liabilities due within a year.
Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
More cash than debt $84m of cash against $1.6bn of debt.
Debt below 40% of shareholders' equity Debt is 384% of equity.
Debt burden no higher than five years ago Debt to equity moved from 993% to 384% over five years.
A year's operating cash flow covers at least 20% of debt $406m of operating cash flow against $1.6bn of debt.
Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Valvoline Inc's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

75 /100

Strong moat

How hard Valvoline's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 20 / 20

Cash operating profit has been a median 17.2% of total assets over 5 years.
Pricing power 13 / 20

Gross margin has been a median 37.9%, moving by 1.9 percentage points (standard deviation) across 10 years.
Durability 16 / 20

Operating margin has been a median 18.7%; its worst year was 15.3%.
Cash conversion 11 / 20

Free cash flow was positive in 7 of 10 years, at a median 8.5% of revenue.
Discipline 20 / 20

The diluted share count fell 30.6% over five years; stock-based pay has been a median 0.6% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (80 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Valvoline Inc's SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Valvoline Inc.