Valero Energy Corporation (VLO)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 26,346,000 | 23,561,000 | 18,430,000 | 18,801,000 | 21,803,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $26,346,000K)
= 0.00
The debt-to-capital ratio of Valero Energy Corp. has shown a downward trend over the past five years, decreasing from 0.31 in 2019 to 0.30 in 2023. This indicates that the company has been reducing its reliance on debt compared to its total capital structure.
A decreasing debt-to-capital ratio suggests that Valero Energy Corp. is becoming less leveraged and may be in a stronger financial position. Lower debt levels relative to capital can lead to lower financial risk and potentially lower interest expenses, which can positively impact the company's profitability and stability.
However, it is important to note that the debt-to-capital ratio of 0.30 in 2023 indicates that debt still accounts for 30% of Valero Energy Corp.'s total capital, implying that the company still carries a significant amount of debt on its balance sheet. It is essential for investors and stakeholders to monitor this ratio to ensure that the company maintains a healthy balance between debt and capital in the future.
Peer comparison
Dec 31, 2023