Valero Energy Corporation (VLO)
Payables 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 |
| Payables | US$ in thousands | 12,567,000 | 12,728,000 | 12,495,000 | 6,082,000 | 10,205,000 |
| Payables turnover | 10.49 | 12.54 | 8.87 | 10.79 | 10.15 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $131,834,000K ÷ $12,567,000K
= 10.49
The payables turnover ratio for Valero Energy Corp. has fluctuated over the past five years, ranging from 8.22 in 2021 to 11.85 in 2022. This ratio indicates how effectively the company is managing its accounts payable by measuring how many times during a period the company pays off its average accounts payable balance.
A higher payables turnover ratio generally suggests that the company is paying off its suppliers more quickly, which could indicate efficient cash flow management or strong supplier relationships. Conversely, a lower ratio could imply delayed payments to suppliers or inefficient use of working capital.
In the case of Valero Energy Corp., the decreasing trend in payables turnover from 2022 to 2023 may suggest a longer payment cycle or a shift in the company's payment practices. Further analysis would be needed to understand the specific factors driving these changes and their impact on the company's overall financial health and liquidity management.
Peer comparison
Dec 31, 2023