Valero Energy Corporation (VLO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 63,056,000 | 60,982,000 | 57,888,000 | 51,774,000 | 53,864,000 |
| Total stockholders’ equity | US$ in thousands | 26,346,000 | 23,561,000 | 18,430,000 | 18,801,000 | 21,803,000 |
| Financial leverage ratio | 2.39 | 2.59 | 3.14 | 2.75 | 2.47 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $63,056,000K ÷ $26,346,000K
= 2.39
The financial leverage ratio of Valero Energy Corp. has exhibited some fluctuations over the past five years. The ratio stood at 2.47 in 2019, increased to 2.75 in 2020, further increased to 3.14 in 2021, and then decreased to 2.59 in 2022 before declining to 2.39 in 2023. These variations indicate changes in the company's reliance on debt financing to fund its operations and investments. A higher financial leverage ratio suggests a greater proportion of debt in the company's capital structure, while a lower ratio indicates a higher level of equity financing. Valero Energy Corp. may have adjusted its capital structure over these years in response to changing market conditions or strategic considerations.
Peer comparison
Dec 31, 2023