Valero Energy Corporation (VLO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 2.45 | 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 |
Valero Energy Corporation's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets, debt-to-capital, and debt-to-equity ratios for Valero Energy Corporation remained consistently at 0.00 from March 2020 to December 2024. This indicates that the company has virtually no long-term debt in relation to its assets, capital, and equity, suggesting a strong financial position with low leverage.
The financial leverage ratio, on the other hand, shows a fluctuating trend over the same period. The ratio increased from 2.53 in March 2020 to a peak of 3.21 in March 2022, before gradually decreasing to 2.45 by December 2024. This signifies that Valero Energy Corporation's level of financial leverage initially rose, potentially indicating a higher reliance on debt financing, but then declined, suggesting a reduction in debt relative to equity.
Overall, the consistent low debt ratios and the declining trend in the financial leverage ratio demonstrate that Valero Energy Corporation has maintained a conservative approach to financing and has effectively managed its debt levels over time, indicating stability and financial strength in meeting its long-term obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.26 | 9.04 | 13.93 | 16.37 | 20.20 | 25.46 | 26.42 | 32.86 | 28.18 | 22.32 | 16.64 | 7.01 | 3.61 | 1.43 | 0.24 | 3.23 | 0.48 | 4.65 | 7.80 | 6.38 |
The interest coverage ratio of Valero Energy Corporation has shown fluctuations over the past few years. As of December 31, 2024, the interest coverage ratio stood at 7.26, indicating that the company generated 7.26 times more operating income than the interest expenses it incurred during that period.
The trend in the interest coverage ratio has been on a declining path from March 31, 2022, where it was at 7.01, dropping to a low of 0.24 by June 30, 2021, before gradually recovering. The ratio saw a significant improvement in the second half of 2022 and continued to rise through the first half of 2023, peaking at 32.86 as of March 31, 2023. However, it dipped again in the following periods but remained above the critical threshold of 1.0, indicating that the company was able to cover its interest obligations comfortably.
Overall, the interest coverage ratio of Valero Energy Corporation exhibits some fluctuation but generally shows a positive trend, with improvements seen in recent quarters. It's essential for investors and creditors to monitor this ratio as it provides insights into the company's ability to meet its interest payments from its operating income.