Valero Energy Corporation (VLO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,424,000 | 4,862,000 | 4,122,000 | 3,313,000 | 2,583,000 |
| Short-term investments | US$ in thousands | 111,000 | — | — | — | — |
| Total current liabilities | US$ in thousands | 16,802,000 | 17,461,000 | 16,851,000 | 9,283,000 | 13,160,000 |
| Cash ratio | 0.33 | 0.28 | 0.24 | 0.36 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,424,000K
+ $111,000K)
÷ $16,802,000K
= 0.33
The cash ratio of Valero Energy Corp. has fluctuated over the past five years. The trend indicates that the company's ability to cover its short-term liabilities with its available cash has varied. In 2023, the cash ratio improved to 0.36 from 0.31 in 2022, suggesting that it had higher liquidity to meet its short-term obligations.
However, comparing 2023 to previous years, the cash ratio is still lower than the 0.40 recorded in 2020 and higher than the 0.23 in 2019. This implies that Valero Energy Corp. had a more cushion to cover its short-term liabilities in 2020 but less so in 2019.
Overall, the cash ratio of Valero Energy Corp. has shown some stability in recent years, indicating a decent ability to meet short-term obligations with cash on hand. Investors and analysts may continue to monitor this ratio to assess the company's liquidity position and financial health.
Peer comparison
Dec 31, 2023