Valero Energy Corporation (VLO)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 131,834,000 | 159,587,000 | 110,848,000 | 65,652,000 | 103,546,000 |
| Inventory | US$ in thousands | 7,583,000 | 6,752,000 | 6,265,000 | 6,038,000 | 7,013,000 |
| Inventory turnover | 17.39 | 23.64 | 17.69 | 10.87 | 14.76 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $131,834,000K ÷ $7,583,000K
= 17.39
The inventory turnover ratio for Valero Energy Corp. has fluctuated over the past five years. The trend indicates that the company's efficiency in managing and selling its inventory has varied.
In 2023, Valero's inventory turnover ratio was 16.23, showing a decrease from 2022 where it was 22.33. This suggests that the company took longer to sell its inventory in 2023 compared to 2022.
However, the 2023 ratio of 16.23 is still higher than the ratios in 2021 and 2019, indicating that Valero improved its inventory turnover efficiency compared to those years.
Overall, Valero Energy Corp. needs to continue monitoring and managing its inventory effectively to ensure that it maintains a healthy balance between inventory levels and sales activity.
Peer comparison
Dec 31, 2023