Valero Energy Corporation (VLO)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 4,657,000 5,424,000 4,862,000 4,122,000 3,313,000
Short-term investments US$ in thousands 111,000
Receivables US$ in thousands
Total current liabilities US$ in thousands 15,495,000 16,802,000 17,461,000 16,851,000 9,283,000
Quick ratio 0.30 0.33 0.28 0.24 0.36

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,657,000K + $—K + $—K) ÷ $15,495,000K
= 0.30

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of less than 1 indicates that a company may have difficulty meeting its short-term liabilities.

Based on the provided data for Valero Energy Corporation, the quick ratio has shown fluctuations over the years:
- As of December 31, 2020, Valero's quick ratio was 0.36, indicating that the company had $0.36 in liquid assets available to cover each $1 of current liabilities.
- By December 31, 2021, the quick ratio decreased to 0.24, suggesting a decline in the company's ability to meet its short-term obligations promptly.
- The ratio slightly improved to 0.28 by December 31, 2022, but remained below the ideal 1:1 ratio.
- In the following years, the quick ratio continued to fluctuate within a narrow range, with values of 0.33 as of December 31, 2023, and 0.30 by December 31, 2024.

Overall, Valero Energy Corporation's quick ratio indicates that the company may have faced challenges in promptly covering its short-term liabilities with its readily available liquid assets. It would be advisable for the company to closely monitor and manage its liquidity position to ensure it can meet its financial obligations in a timely manner.


See also:

Valero Energy Corporation Quick Ratio