Valero Energy Corporation (VLO)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 15.75 | 15.50 | 15.92 | 14.71 | 15.37 | 16.82 | 17.97 | 21.87 | 26.44 | 31.24 | 28.60 | 37.33 | 26.42 | 21.15 | 15.70 | 12.04 | 9.89 | 10.44 | 16.04 | 38.84 |
Valero Energy Corporation's Inventory turnover ratio has shown a fluctuating trend over the years, starting at a high of 28.31 in March 2020 and decreasing to 16.13 by December 2024. This indicates that the company's ability to sell through its inventory efficiently has decreased over time.
The Receivables turnover data was not available, indicating that the company may not provide this information or that the ratio is not significant enough to report separately.
Similarly, the Payables turnover data was also not available, suggesting that the company may not disclose this metric or that the turnover rate of payables is not considered relevant in the analysis of Valero Energy Corporation's financial performance.
The Working Capital turnover ratio has shown a mixed trend, with fluctuations from 9.89 in December 2020 to a peak of 37.33 in March 2022. This ratio signifies how efficiently the company is generating revenue from its working capital, with higher ratios indicating better utilization of working capital.
In conclusion, the Inventory turnover ratio for Valero Energy Corporation has decreased over the years, while the Working Capital turnover ratio has shown mixed results. The lack of data for Receivables and Payables turnover ratios prevents a comprehensive analysis of the company's overall activity ratios.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 22.63 | 20.00 | 22.35 | 22.29 | 20.99 | 20.25 | 17.99 | 17.57 | 15.44 | 15.45 | 18.02 | 20.68 | 20.62 | 24.25 | 27.39 | 34.22 | 33.54 | 26.16 | 23.37 | 12.89 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data on activity ratios for Valero Energy Corporation, let's analyze the Days of Inventory on Hand (DOH) metric. The DOH represents the number of days it takes for a company to turn its inventory into sales.
Valero Energy Corporation's DOH has shown a decreasing trend over the quarters from March 31, 2020, to December 31, 2024. The trend indicates an improvement in inventory management efficiency as the number of days required to sell the inventory has been declining steadily.
The company's DOH decreased from 12.89 days on March 31, 2020, to 22.63 days on December 31, 2024. The lowest DOH was observed on September 30, 2022, at 15.44 days, indicating a swift conversion of inventory into sales at that time.
Overall, the decreasing trend in DOH reflects a positive sign of effective inventory management at Valero Energy Corporation over the analyzed period, resulting in faster inventory turnover and potentially lower carrying costs.
See also:
Valero Energy Corporation Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 4.99 | 5.14 | 5.66 | 5.50 | 5.59 | 5.06 | 4.27 | 3.55 | 3.11 | 2.66 | 2.09 | 2.05 | 2.48 | 2.86 | 3.48 |
| Total asset turnover | 2.16 | 2.23 | 2.20 | 2.24 | 2.25 | 2.39 | 2.59 | 2.90 | 2.89 | 2.87 | 2.42 | 2.18 | 1.97 | 1.73 | 1.46 | 1.19 | 1.25 | 1.47 | 1.78 | 2.22 |
The fixed asset turnover ratio for Valero Energy Corporation has shown an increasing trend from 3.48 in March 2020 to 5.14 in June 2023 but decreased slightly to 4.99 by September 2023. This ratio measures how efficiently the company is generating revenue from its investment in fixed assets, indicating an improvement in the utilization of fixed assets over the period analyzed.
On the other hand, the total asset turnover ratio has also demonstrated an upward trajectory, rising from 2.22 in March 2020 to 2.20 by June 2024. This ratio signifies the company's ability to generate sales relative to its total asset base, and the increasing trend suggests that Valero Energy Corporation is becoming more effective in utilizing its total assets to generate revenue.
Overall, the long-term activity ratios of Valero Energy Corporation indicate improvements in asset utilization efficiency over the period from March 2020 to June 2024, as both fixed asset turnover and total asset turnover ratios have generally increased. This suggests that the company is efficiently managing its assets to generate revenue and improve its operational performance.
See also:
Valero Energy Corporation Long-term (Investment) Activity Ratios (Quarterly Data)