Valero Energy Corporation (VLO)

Days of inventory on hand (DOH)

		Dec 31, 2024	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
Inventory turnover		16.13	18.25	16.33	16.37	17.39	18.02	20.29	20.77	23.64	23.62	20.25	17.65	17.70	15.05	13.33	10.67	10.88	13.95	15.62	28.31
DOH	days	22.63	20.00	22.35	22.29	20.99	20.25	17.99	17.57	15.44	15.45	18.02	20.68	20.62	24.25	27.39	34.22	33.54	26.16	23.37	12.89

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 16.13
= 22.63

Valero Energy Corporation's Days of Inventory on Hand (DOH) has shown fluctuations over the analyzed period from March 31, 2020, to December 31, 2024. The trend indicates an initial increase in inventory holding duration from 12.89 days on March 31, 2020, to a peak of 34.22 days on March 31, 2021. Subsequently, the DOH metric started to decline steadily through to June 30, 2022, reaching 18.02 days.

From June 30, 2022, to September 30, 2024, the DOH ratio remained relatively stable, hovering around the range of 15.44 days to 22.63 days. This stability might suggest effective inventory management practices during this period. Notably, the DOH increased slightly to 22.63 days by December 31, 2024, indicating a potential need for closer monitoring of inventory levels.

Overall, the DOH ratio for Valero Energy Corporation demonstrates a tendency to fluctuate, showcasing potential variations in inventory management efficiency and inventory turnover rates within the company's operations. Monitoring this ratio closely can provide insights into the company's inventory management strategies and their effectiveness in optimizing working capital and operational efficiency.