Valero Energy Corporation (VLO)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	125,197,000	128,610,000	131,123,000	129,538,000	131,877,000	135,408,000	141,205,000	154,840,000	159,632,000	156,555,000	144,726,000	126,603,000	110,895,000	93,735,000	81,341,000	62,726,000	65,700,000	74,745,000	84,667,000	104,055,000
Inventory	US$ in thousands	7,761,000	7,048,000	8,028,000	7,912,000	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
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $125,197,000K ÷ $7,761,000K
= 16.13

Based on the provided data for Valero Energy Corporation's inventory turnover, we observe the following trends:

1. The inventory turnover ratio has shown a general decreasing trend over the years, indicating that Valero Energy Corporation's inventory is being sold at a slower pace.
2. The inventory turnover was highest at 28.31 on March 31, 2020, and has gradually declined to 16.13 on December 31, 2024.
3. Despite fluctuations, there are noticeable periods of stability in the inventory turnover ratio, such as from March 2022 to June 2023, where the ratio remained relatively consistent.
4. The ratio experienced a significant decrease from December 31, 2024, to 16.13, indicating potential inefficiencies in managing and selling inventory at the end of the period.
5. Overall, a declining inventory turnover ratio may suggest excess inventory levels or challenges in converting inventory into sales effectively.

In conclusion, Valero Energy Corporation should closely monitor its inventory turnover ratio and evaluate inventory management practices to ensure optimal efficiency and liquidity.