Valero Energy Corporation (VLO)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.53 | 1.56 | 1.38 | 1.26 | 1.71 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $23,737,000K ÷ $15,495,000K
= 1.53
The current ratio for Valero Energy Corporation has shown some fluctuations over the past five years. It was 1.71 as of December 31, 2020, indicating a strong ability to cover short-term liabilities with current assets. However, by December 31, 2021, the current ratio decreased to 1.26, which may raise some concerns regarding the company's liquidity position.
Subsequently, the current ratio improved to 1.38 by December 31, 2022, suggesting a better ability to meet short-term obligations. There was a further increase to 1.56 by December 31, 2023, indicating continued enhancement in liquidity. However, by December 31, 2024, the current ratio declined slightly to 1.53, although it still reflects a reasonable ability to cover current liabilities with current assets.
Overall, while there have been fluctuations in Valero Energy Corporation's current ratio over the years, it has generally remained above 1, indicating that the company has sufficient current assets to meet its short-term liabilities. It is essential for the company to continue monitoring and managing its liquidity position effectively to ensure financial stability and meet its obligations on time.
Peer comparison
Dec 31, 2024