Valero Energy Corporation (VLO)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	131,834,000	135,365,000	141,162,000	154,796,000	159,587,000	156,509,000	144,680,000	126,557,000	110,848,000	93,689,000	81,294,000	62,679,000	65,652,000	74,694,000	84,617,000	104,003,000	103,546,000	104,854,000	108,122,000	109,792,000
Inventory	US$ in thousands	7,583,000	7,513,000	6,961,000	7,455,000	6,752,000	6,628,000	7,147,000	7,174,000	6,265,000	6,227,000	6,103,000	5,881,000	6,038,000	5,357,000	5,420,000	3,675,000	7,013,000	6,376,000	6,281,000	6,554,000
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $131,834,000K ÷ $7,583,000K
= 17.39

Valero Energy Corp.'s inventory turnover has exhibited a consistent trend of decline over the four quarters of 2023, decreasing from 19.56 in Q1 to 16.23 in Q4. This indicates that the company is taking longer to sell its inventory, which may suggest potential inefficiencies in managing inventory levels or slower turnover of goods.

Comparing the 2023 data to the same periods in 2022, the inventory turnover has generally decreased from the previous year. The Q4 2023 inventory turnover of 16.23 is notably lower than the Q4 2022 figure of 22.33, indicating a significant decline in inventory turnover efficiency.

Overall, the declining trend in inventory turnover over the quarters in 2023 and the year-on-year decrease compared to 2022 suggest that Valero Energy Corp. may be facing challenges in efficiently managing its inventory levels and converting them into sales, which could potentially impact the company's profitability and liquidity. Further analysis and monitoring of the inventory turnover ratio are recommended to assess the effectiveness of the company's inventory management strategies.