Valero Energy Corporation (VLO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Valero Energy Corp.'s solvency ratios show a consistent trend over the past eight quarters. The debt-to-assets ratio has remained relatively stable around 0.18 to 0.22, indicating that the company carries a moderate level of debt compared to its assets.
The debt-to-capital ratio has also shown consistency in the range of 0.30 to 0.41, implying that Valero relies on debt for about 30% to 41% of its capital structure. This indicates a moderate level of financial leverage.
The debt-to-equity ratio has decreased from 0.70 in Q1 2022 to 0.44 in Q4 2023, showing an improvement in the company's financial health and lower reliance on debt financing relative to equity.
The financial leverage ratio has decreased from 3.21 in Q1 2022 to 2.39 in Q4 2023, indicating that Valero has been able to reduce its reliance on debt to finance its operations and investments, leading to a more stable capital structure.
Overall, Valero Energy Corp.'s solvency ratios demonstrate a prudent approach to managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure over the analyzed period.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 20.35 | 25.23 | 26.04 | 32.52 | 27.61 | 21.80 | 16.06 | 6.33 | 2.97 | -0.06 | -2.31 | -0.21 | -3.13 | 0.45 | 3.59 | 2.00 | 7.88 | 7.45 | 8.24 | 8.75 |
Valero Energy Corp.'s interest coverage ratio has shown a consistently strong performance over the past eight quarters. The ratio has ranged from 6.98 in Q1 2022 to as high as 38.28 in Q3 2023, with an average of approximately 25.49 across the period.
This indicates the company's ability to comfortably meet its interest obligations through its earnings before interest and taxes (EBIT). The significant increase in interest coverage from Q1 2022 to Q3 2023 reflects an improvement in Valero Energy Corp.'s financial health and resilience.
The consistently high interest coverage ratios suggest that the company has sufficient earnings to service its debt and is at a lower risk of defaulting on interest payments. Overall, the trend in Valero Energy Corp.'s interest coverage indicates a strong financial position and efficient management of debt obligations.