Valero Energy Corporation (VLO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 5,424,000 | 4,862,000 | 4,122,000 | 3,313,000 | 2,583,000 |
| Short-term investments | US$ in thousands | 111,000 | — | — | — | — |
| Receivables | US$ in thousands | 12,525,000 | 11,919,000 | 10,378,000 | 6,109,000 | 8,988,000 |
| Total current liabilities | US$ in thousands | 16,802,000 | 17,461,000 | 16,851,000 | 9,283,000 | 13,160,000 |
| Quick ratio | 1.07 | 0.96 | 0.86 | 1.01 | 0.88 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,424,000K
+ $111,000K
+ $12,525,000K)
÷ $16,802,000K
= 1.07
The quick ratio for Valero Energy Corp. has shown some fluctuations over the past five years. The quick ratio provides an indication of a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.
In 2023, the quick ratio improved to 1.11, reflecting a stronger liquidity position compared to the previous year. This suggests that Valero Energy Corp. had $1.11 in liquid assets available to cover each dollar of current liabilities as of December 31, 2023.
In 2022, the quick ratio stood at 1.00, indicating that the company had just enough liquid assets to cover its current liabilities. The quick ratio decreased from the previous year, which may signal a slight decrease in liquidity.
In 2021, the quick ratio was 0.88, signaling a lower liquidity position compared to the previous year. This suggests that Valero Energy Corp. had $0.88 in liquid assets available for every dollar of current liabilities, potentially indicating a constrained liquidity position.
In 2020 and 2019, the quick ratios were 1.06 and 0.91, respectively. These ratios indicate fluctuations in Valero Energy Corp.'s liquidity position over those years, with 2020 showing a relatively stronger liquidity position compared to 2019.
Overall, the trend in Valero Energy Corp.'s quick ratio shows variability in its ability to cover short-term obligations with liquid assets. It is essential to monitor this ratio over time to assess the company's liquidity management and ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023