Valero Energy Corporation (VLO)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	129,810,000	134,468,000	140,020,000	140,066,000	144,766,000	151,098,000	157,148,000	174,280,000	176,383,000	170,540,000	155,606,000	131,713,000	113,977,000	94,678,000	80,967,000	63,616,000	64,912,000	76,187,000	87,627,000	106,163,000
Total current assets	US$ in thousands	23,737,000	23,976,000	27,115,000	25,674,000	26,221,000	26,577,000	23,695,000	23,335,000	24,133,000	22,696,000	27,409,000	23,313,000	21,165,000	18,790,000	19,372,000	17,591,000	15,844,000	15,422,000	12,762,000	11,465,000
Total current liabilities	US$ in thousands	15,495,000	15,298,000	18,318,000	16,149,000	16,802,000	17,592,000	14,948,000	15,365,000	17,461,000	17,237,000	21,969,000	19,785,000	16,851,000	14,313,000	14,214,000	12,307,000	9,283,000	8,122,000	7,300,000	8,732,000
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $129,810,000K ÷ ($23,737,000K – $15,495,000K)
= 15.75

Working capital turnover is a financial ratio used to measure a company's efficiency in utilizing its working capital to generate revenue. Valero Energy Corporation's working capital turnover has fluctuated over the past few years, ranging from a high of 38.84 in March 2020 to a low of 9.89 in December 2020.

The trend shows a general decline in the ratio from 2020 to 2024, indicating a decrease in the company's efficiency in utilizing its working capital to generate sales. However, there are periods of improvement, such as the increase in the ratio from March 2023 to March 2024.

Overall, the working capital turnover for Valero Energy Corporation suggests a need for closer monitoring and potential analysis of the factors contributing to the fluctuations in the ratio to ensure optimal utilization of working capital for revenue generation.