Valero Energy Corporation (VLO)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,424,000 | 5,831,000 | 5,075,000 | 5,521,000 | 4,862,000 | 3,969,000 | 5,392,000 | 2,638,000 | 4,122,000 | 3,498,000 | 3,572,000 | 2,254,000 | 3,313,000 | 4,047,000 | 2,319,000 | 1,515,000 | 2,583,000 | 2,137,000 | 2,033,000 | 2,777,000 |
| Short-term investments | US$ in thousands | 111,000 | 151,000 | 202,000 | 224,000 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.33 | 0.34 | 0.35 | 0.37 | 0.28 | 0.23 | 0.25 | 0.13 | 0.24 | 0.24 | 0.25 | 0.18 | 0.36 | 0.50 | 0.32 | 0.17 | 0.20 | 0.18 | 0.16 | 0.22 |
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 eight quarters, ranging from 0.15 to 0.40. The cash ratio measures a company's ability to cover its short-term liabilities with its readily available cash and cash equivalents.
Looking at the trend, we observe an overall improvement in the cash ratio over the past two years. The ratio has increased from 0.26 in Q3 2022 to 0.40 in Q1 2023, indicating a strengthening ability to meet short-term obligations solely from cash reserves.
Despite some fluctuations, the cash ratio has generally remained above 0.30 since Q4 2022, reflecting the company's prudent liquidity management. A higher cash ratio suggests a stronger liquidity position, indicating that Valero Energy Corp. has a sufficient level of cash to cover its short-term debts.
In conclusion, the upward trend in Valero Energy Corp.'s cash ratio signifies an improved liquidity position and suggests that the company is better equipped to handle short-term financial obligations using its cash reserves.
Peer comparison
Dec 31, 2023