Valero Energy Corporation (VLO)

Payables 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
Payables	US$ in thousands	12,567,000	13,342,000	10,825,000	10,498,000	12,728,000	13,003,000	16,643,000	15,236,000	12,495,000	9,820,000	10,168,000	9,113,000	6,082,000	5,237,000	4,652,000	5,906,000	10,205,000	9,504,000	10,135,000	10,005,000
Payables turnover		10.49	10.15	13.04	14.75	12.54	12.04	8.69	8.31	8.87	9.54	8.00	6.88	10.79	14.26	18.19	17.61	10.15	11.03	10.67	10.97

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $131,834,000K ÷ $12,567,000K
= 10.49

Valero Energy Corp.'s payables turnover has varied over the past eight quarters. The payables turnover ratio measures how efficiently the company is managing its accounts payable by analyzing the number of times the company pays off its suppliers during a specific period.

In Q1 2023, the payables turnover ratio was 13.89, indicating that Valero Energy Corp. paid off its suppliers almost 14 times during that quarter. This was the highest value in the given period, suggesting the company efficiently managed its accounts payable.

In Q2 2023, the payables turnover ratio decreased to 12.22, followed by a further decrease to 9.49 in Q3 2023. This implies that the company took longer to pay off its suppliers in these quarters compared to Q1 2023.

However, in Q4 2023, the payables turnover ratio increased to 9.79, showing some improvement in managing accounts payable compared to the previous quarter. Notably, the payables turnover ratio has been relatively high in recent quarters, indicating generally effective management of accounts payable by Valero Energy Corp.

Overall, fluctuations in the payables turnover ratio suggest varying payment patterns and supplier management practices within the company. It is important for Valero Energy Corp. to monitor and maintain an optimal balance in managing its accounts payable to ensure continued efficiency in its operations.