Valero Energy Corporation (VLO)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	63,056,000	63,175,000	60,667,000	60,177,000	60,982,000	59,329,000	64,345,000	60,402,000	57,888,000	54,691,000	55,456,000	53,614,000	51,774,000	51,732,000	49,099,000	47,747,000	53,864,000	51,229,000	52,022,000	52,095,000
Total stockholders’ equity	US$ in thousands	26,346,000	25,975,000	25,851,000	24,977,000	23,561,000	21,912,000	20,969,000	18,821,000	18,430,000	17,476,000	17,651,000	17,801,000	18,801,000	19,223,000	19,847,000	18,842,000	21,803,000	21,107,000	21,345,000	21,309,000
Financial leverage ratio		2.39	2.43	2.35	2.41	2.59	2.71	3.07	3.21	3.14	3.13	3.14	3.01	2.75	2.69	2.47	2.53	2.47	2.43	2.44	2.44

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 fluctuations over the past eight quarters. The ratio decreased from 2.59 in Q4 2022 to 2.39 in Q4 2023, indicating a reduction in the company's reliance on debt to finance its assets. However, the ratio then fluctuated between 2.35 and 2.43 in the subsequent quarters of 2023, suggesting a relatively stable level of leverage during this period.

Comparing the most recent ratios to those of Q2 and Q3 2022, we observe a decreasing trend in the financial leverage ratio, which may signify a more conservative capital structure or improved financial health. It is noteworthy that the ratio peaked at 3.21 in Q1 2022 and has since declined consistently, possibly due to debt reduction or increased equity financing.

Overall, the financial leverage ratio of Valero Energy Corp. has shown variability but appears to have trended downwards in recent quarters. This trend could indicate a strategic shift towards a more sustainable and balanced capital structure, with potentially lower financial risk associated with excessive debt levels.