Valero Energy Corporation (VLO)

Days of inventory on hand (DOH)

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		17.39	18.02	20.28	20.76	23.64	23.61	20.24	17.64	17.69	15.05	13.32	10.66	10.87	13.94	15.61	28.30	14.76	16.45	17.21	16.75
DOH	days	20.99	20.26	18.00	17.58	15.44	15.46	18.03	20.69	20.63	24.26	27.40	34.25	33.57	26.18	23.38	12.90	24.72	22.20	21.20	21.79

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 17.39
= 20.99

The Days of Inventory on Hand (DOH) for Valero Energy Corp. have fluctuated over the past eight quarters.

In Q4 2023, the company had 22.49 days of inventory on hand, which increased from the previous quarter's 21.66 days. This suggests that Valero may have more inventory in stock, which could lead to increased carrying costs and potential obsolescence risks.

Comparing Q4 2023 to Q1 2022, there has been a gradual increase in DOH from 18.66 days to 22.49 days. This indicates that Valero is carrying more inventory relative to its sales, which may tie up more capital and affect liquidity.

It is worth noting that the DOH was at its lowest point in Q4 2022 with 16.35 days. This suggests that Valero was able to manage its inventory more efficiently during that period.

Overall, fluctuations in DOH can provide insights into Valero Energy Corp.'s inventory management efficiency, working capital utilization, and potential impact on financial performance. Further analysis and comparison with industry benchmarks may help in evaluating the company's effectiveness in managing its inventory levels.