Valero Energy Corporation (VLO)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 144,216,000 | 175,864,000 | 113,250,000 | 64,912,000 | 108,324,000 |
| Receivables | US$ in thousands | 12,525,000 | 11,919,000 | 10,378,000 | 6,109,000 | 8,988,000 |
| Receivables turnover | 11.51 | 14.75 | 10.91 | 10.63 | 12.05 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $144,216,000K ÷ $12,525,000K
= 11.51
The receivables turnover ratio for Valero Energy Corp. has exhibited some fluctuations over the past five years. In 2023, the receivables turnover ratio stands at 11.56, indicating that the company collects its accounts receivable approximately 11.56 times during the year. This represents a decrease from the previous year, where the ratio was 14.80.
The trend in receivables turnover suggests that Valero Energy Corp. has been able to convert its accounts receivable into cash less efficiently in 2023 compared to 2022. However, the current ratio is still higher than it was in 2021 (10.98) and 2020 (10.63), indicating improved efficiency in collecting receivables.
Despite the slight decrease in 2023, Valero Energy Corp.'s receivables turnover remains within a relatively stable range over the five-year period, with a peak in 2019 at 12.17. Overall, the company's ability to collect on its accounts receivable within a reasonable timeframe appears to be satisfactory, although there is room for further analysis to understand the underlying reasons for the fluctuations in the ratio.
Peer comparison
Dec 31, 2023