Valero Energy Corporation (VLO)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		16.12	17.39	23.64	17.70	10.88
DOH	days	22.64	20.99	15.44	20.62	33.54

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 16.12
= 22.64

The days of inventory on hand (DOH) for Valero Energy Corporation have shown a decreasing trend over the years, indicating an improvement in managing their inventory levels efficiently. From 33.54 days on December 31, 2020, the DOH decreased to 20.62 days by December 31, 2021, demonstrating a more rapid turnover of inventory.

Further improvement was observed as the DOH declined to 15.44 days on December 31, 2022, suggesting that Valero was able to convert its inventory into sales at a faster rate. However, by December 31, 2023, the DOH increased slightly to 20.99 days, possibly due to changes in demand or supply chain disruptions.

By December 31, 2024, the days of inventory on hand stood at 22.64 days, still lower than the initial value in 2020 but slightly higher compared to the previous year. Overall, the decreasing trend in DOH indicates that Valero Energy Corporation has been managing its inventory effectively, optimizing its working capital and potentially minimizing carrying costs associated with excess inventory.