Valero Energy Corporation (VLO)

Working capital 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
Revenue (ttm)	US$ in thousands	144,216,000	150,596,000	156,657,000	173,795,000	175,838,000	169,727,000	154,779,000	130,878,000	113,188,000	94,227,000	80,668,000	63,467,000	64,912,000	76,187,000	87,627,000	106,163,000	108,324,000	109,175,000	112,775,000	114,857,000
Total current assets	US$ in thousands	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	18,969,000	17,033,000	17,811,000	18,480,000
Total current liabilities	US$ in thousands	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	13,160,000	12,130,000	12,548,000	12,913,000
Working capital turnover		15.31	16.76	17.91	21.81	26.35	31.09	28.45	37.10	26.24	21.05	15.64	12.01	9.89	10.44	16.04	38.84	18.65	22.27	21.43	20.63

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $144,216,000K ÷ ($26,221,000K – $16,802,000K)
= 15.31

The working capital turnover ratio of Valero Energy Corp. has shown a declining trend over the past eight quarters, indicating a decrease in the company's efficiency in managing its working capital to generate revenue.

The ratio has decreased from 37.33 in Q1 2022 to 15.37 in Q4 2023, reflecting a substantial drop in the efficiency of utilizing its working capital to support the company's operations and generate sales.

A high working capital turnover ratio is generally preferred as it implies that the company is effectively using its short-term assets and liabilities to support its sales activities. Conversely, a declining ratio suggests that the company may be struggling to efficiently convert its working capital into revenue.

Valero Energy Corp. should focus on improving its working capital management practices to enhance its operational efficiency and overall financial performance in the future.