Valero Energy Corporation (VLO)

Liquidity ratios

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
Current ratio 1.56 1.51 1.59 1.52 1.38 1.32 1.25 1.18 1.26 1.31 1.36 1.43 1.71 1.90 1.75 1.31 1.44 1.40 1.42 1.43
Quick ratio 1.07 1.05 1.08 1.00 0.96 0.90 0.90 0.79 0.86 0.85 0.89 0.92 1.01 1.19 0.89 0.79 0.88 0.84 0.88 0.86
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

Valero Energy Corp.'s liquidity ratios have exhibited a generally positive trend over the past eight quarters. The current ratio, a measure of the company's ability to cover its short-term obligations with its current assets, has shown improvement, increasing from 1.18 in Q1 2022 to 1.56 in Q4 2023. This suggests that Valero has enhanced its short-term liquidity position.

Similarly, the quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, has also shown an upward trend, improving from 0.82 in Q1 2022 to 1.11 in Q4 2023. This indicates that the company's ability to meet short-term obligations without relying on inventory has strengthened over the quarters.

The cash ratio, which measures a company's ability to cover short-term liabilities with its available cash and cash equivalents, has been relatively stable, fluctuating between 0.15 and 0.40 over the eight quarters. While the cash ratio is at the lower end compared to the other liquidity ratios, the consistency in maintaining a healthy level of cash on hand suggests that Valero has been managing its liquidity effectively.

Overall, the increasing current and quick ratios, coupled with the stable cash ratio, indicate that Valero Energy Corp. has been successful in maintaining adequate liquidity to meet its short-term financial obligations. These ratios suggest that the company has a strong liquidity position and is well-positioned to handle its current financial commitments.

See also:

Valero Energy Corporation Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days 17.90 14.74 15.38 13.17 11.07 10.04 10.09 13.23 12.95 19.42 23.07 33.02 34.11 27.42 20.61 10.71 19.03 15.84 16.28 14.87

The cash conversion cycle of Valero Energy Corp. has shown some fluctuations over the last few quarters. In Q4 2023, the cash conversion cycle increased to 16.80 days from 13.55 days in Q3 2023. This indicates that the company took longer to convert its investments in inventory and receivables back into cash during the period.

Looking back over the past year, there has been a general upward trend in the cash conversion cycle since Q1 2022, where it stood at 11.45 days. This suggests that Valero Energy Corp. has been taking longer to convert its resources into cash, potentially tying up more capital in the operating cycle.

The lowest point in the cash conversion cycle was observed in Q2 2022 at 8.45 days, which indicates that the company was more efficient in managing its working capital during that period.

Overall, the trend in the cash conversion cycle for Valero Energy Corp. indicates fluctuations with some periods of improved efficiency and other periods of increased working capital requirements. Monitoring this metric closely can help assess the effectiveness of the company's liquidity management and working capital practices.