Valero Energy Corporation (VLO)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	26,221,000	24,133,000	21,165,000	15,844,000	18,969,000
Total current liabilities	US$ in thousands	16,802,000	17,461,000	16,851,000	9,283,000	13,160,000
Current ratio		1.56	1.38	1.26	1.71	1.44

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $26,221,000K ÷ $16,802,000K
= 1.56

The current ratio of Valero Energy Corp. has fluctuated over the past five years, with a trend of inconsistency. The ratio indicates the company's ability to meet its short-term obligations with its current assets. A higher current ratio is generally seen as favorable, indicating a stronger ability to cover short-term liabilities.

Analyzing the data provided:
- In 2023, the current ratio improved to 1.56 from 1.38 in 2022, which suggests that Valero Energy Corp. had a better ability to cover its short-term obligations with its current assets.
- However, the current ratio was lower in 2023 compared to 1.71 in 2020, indicating a slight deterioration in liquidity since then.
- The current ratio in 2021 was lower than both the preceding and succeeding years, indicating a potential liquidity issue or a change in working capital management during that period.

Overall, while the current ratio for Valero Energy Corp. has exhibited some variability, it is important to consider additional factors such as industry norms, company strategy, and any significant changes in operations when interpreting the company's liquidity position.