Valero Energy Corporation (VLO)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	60,143,000	60,382,000	63,615,000	62,574,000	64,483,000	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
Total stockholders’ equity	US$ in thousands	24,512,000	25,253,000	25,443,000	26,057,000	26,346,000	25,975,000	25,851,000	24,977,000	23,561,000	23,715,000	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
Financial leverage ratio		2.45	2.39	2.50	2.40	2.45	2.43	2.35	2.41	2.59	2.50	3.07	3.21	3.14	3.13	3.14	3.01	2.75	2.69	2.47	2.53

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $60,143,000K ÷ $24,512,000K
= 2.45

The financial leverage ratio of Valero Energy Corporation has shown fluctuations over the past few years. The ratio increased steadily from March 31, 2020, to March 31, 2022, reaching its peak at 3.21. This indicates that the company relied more on debt to finance its operations during this period.

Subsequently, there was a slight decrease in the financial leverage ratio by June 30, 2022, followed by a more significant drop by September 30, 2022, down to 2.50. This decrease suggests that Valero Energy Corporation may have paid down some of its debt or increased its equity, resulting in a lower reliance on debt financing.

From September 30, 2022, to December 31, 2024, the financial leverage ratio fluctuated within a relatively narrow range between 2.39 and 2.59. These fluctuations may indicate ongoing adjustments in the company's capital structure and financing decisions.

Overall, a financial leverage ratio of around 2.5 to 3.0 indicates that Valero Energy Corporation has been moderately leveraged, balancing the use of debt and equity to support its business operations and investments. It is essential for the company to continue monitoring and managing its leverage levels effectively to maintain financial stability and meet its long-term financial obligations.