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.
Peer comparison
Dec 31, 2023