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.