Valero Energy Corporation (VLO)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 129,881,000 | 144,766,000 | 176,383,000 | 113,977,000 | 64,912,000 |
| Total current assets | US$ in thousands | 23,737,000 | 26,221,000 | 24,133,000 | 21,165,000 | 15,844,000 |
| Total current liabilities | US$ in thousands | 15,495,000 | 16,802,000 | 17,461,000 | 16,851,000 | 9,283,000 |
| Working capital turnover | 15.76 | 15.37 | 26.44 | 26.42 | 9.89 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $129,881,000K ÷ ($23,737,000K – $15,495,000K)
= 15.76
The working capital turnover of Valero Energy Corporation has shown a significant increase from 9.89 in December 2020 to 26.42 in December 2021, followed by a slight increase to 26.44 in December 2022. This indicates that the company is effectively utilizing its working capital to generate sales. However, there was a notable decline in the working capital turnover to 15.37 in December 2023, with a slight recovery to 15.76 in December 2024.
Overall, the trend suggests that Valero Energy Corporation has experienced a fluctuation in its efficiency in converting working capital into revenue over the years analyzed. It is important for the company to further evaluate its working capital management strategies to maintain a consistent and optimal level of working capital turnover for sustainable business operations.
Peer comparison
Dec 31, 2024