Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Valero Energy Corp., balance sheet: inventory

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Refinery feedstocks	2,223)	1,949)	1,995)	1,979)	2,399)
Refined petroleum products and blendstocks	3,790)	3,579)	3,567)	3,425)	4,034)
Renewable diesel feedstocks and products	913)	583)	135)	50)	46)
Ethanol feedstocks and products	313)	328)	273)	297)	260)
Materials and supplies	344)	313)	295)	287)	274)
Inventories	7,583)	6,752)	6,265)	6,038)	7,013)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	Valero Energy Corp. inventories increased from 2021 to 2022 and from 2022 to 2023.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Inventories
Inventories at LIFO (as reported)	7,583)	6,752)	6,265)	6,038)	7,013)
Add: Inventory LIFO reserve	4,400)	6,300)	5,200)	1,300)	2,500)
Inventories at FIFO (adjusted)	11,983)	13,052)	11,465)	7,338)	9,513)
Adjustment to Current Assets
Current assets (as reported)	26,221)	24,133)	21,165)	15,844)	18,969)
Add: Inventory LIFO reserve	4,400)	6,300)	5,200)	1,300)	2,500)
Current assets (adjusted)	30,621)	30,433)	26,365)	17,144)	21,469)
Adjustment to Total Assets
Total assets (as reported)	63,056)	60,982)	57,888)	51,774)	53,864)
Add: Inventory LIFO reserve	4,400)	6,300)	5,200)	1,300)	2,500)
Total assets (adjusted)	67,456)	67,282)	63,088)	53,074)	56,364)
Adjustment to Total Valero Energy Corporation Stockholders’ Equity
Total Valero Energy Corporation stockholders’ equity (as reported)	26,346)	23,561)	18,430)	18,801)	21,803)
Add: Inventory LIFO reserve	4,400)	6,300)	5,200)	1,300)	2,500)
Total Valero Energy Corporation stockholders’ equity (adjusted)	30,746)	29,861)	23,630)	20,101)	24,303)
Adjustment to Net Income (loss) Attributable To Valero Energy Corporation Stockholders
Net income (loss) attributable to Valero Energy Corporation stockholders (as reported)	8,835)	11,528)	930)	(1,421)	2,422)
Add: Increase (decrease) in inventory LIFO reserve	(1,900)	1,100)	3,900)	(1,200)	1,000)
Net income (loss) attributable to Valero Energy Corporation stockholders (adjusted)	6,935)	12,628)	4,830)	(2,621)	3,422)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Valero Energy Corp. inventory value on Dec 31, 2023 would be $11,983) (in millions) if the FIFO inventory method was used instead of LIFO. Valero Energy Corp. inventories, valued on a LIFO basis, on Dec 31, 2023 were $7,583). Valero Energy Corp. inventories would have been $4,400) higher than reported on Dec 31, 2023 if the FIFO method had been used instead.

Valero Energy Corp., Financial Data: Reported vs. Adjusted

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Valero Energy Corp., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Current Ratio
Reported current ratio (LIFO)	1.56	1.38	1.26	1.71	1.44
Adjusted current ratio (FIFO)	1.82	1.74	1.56	1.85	1.63
Net Profit Margin
Reported net profit margin (LIFO)	6.10%	6.54%	0.82%	-2.19%	2.24%
Adjusted net profit margin (FIFO)	4.79%	7.16%	4.24%	-4.04%	3.16%
Total Asset Turnover
Reported total asset turnover (LIFO)	2.30	2.89	1.97	1.25	2.01
Adjusted total asset turnover (FIFO)	2.15	2.62	1.81	1.22	1.92
Financial Leverage
Reported financial leverage (LIFO)	2.39	2.59	3.14	2.75	2.47
Adjusted financial leverage (FIFO)	2.19	2.25	2.67	2.64	2.32
Return on Equity (ROE)
Reported ROE (LIFO)	33.53%	48.93%	5.05%	-7.56%	11.11%
Adjusted ROE (FIFO)	22.56%	42.29%	20.44%	-13.04%	14.08%
Return on Assets (ROA)
Reported ROA (LIFO)	14.01%	18.90%	1.61%	-2.74%	4.50%
Adjusted ROA (FIFO)	10.28%	18.77%	7.66%	-4.94%	6.07%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Valero Energy Corp. adjusted current ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Valero Energy Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Valero Energy Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Valero Energy Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Valero Energy Corp. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Valero Energy Corp. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Valero Energy Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Current assets	26,221)	24,133)	21,165)	15,844)	18,969)
Current liabilities	16,802)	17,461)	16,851)	9,283)	13,160)
Liquidity Ratio
Current ratio¹	1.56	1.38	1.26	1.71	1.44
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted current assets	30,621)	30,433)	26,365)	17,144)	21,469)
Current liabilities	16,802)	17,461)	16,851)	9,283)	13,160)
Liquidity Ratio
Adjusted current ratio²	1.82	1.74	1.56	1.85	1.63

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 26,221 ÷ 16,802 = 1.56

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 30,621 ÷ 16,802 = 1.82

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Valero Energy Corp. adjusted current ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Valero Energy Corporation stockholders	8,835)	11,528)	930)	(1,421)	2,422)
Revenues, includes excise taxes on sales by certain of foreign operations	144,766)	176,383)	113,977)	64,912)	108,324)
Profitability Ratio
Net profit margin¹	6.10%	6.54%	0.82%	-2.19%	2.24%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Valero Energy Corporation stockholders	6,935)	12,628)	4,830)	(2,621)	3,422)
Revenues, includes excise taxes on sales by certain of foreign operations	144,766)	176,383)	113,977)	64,912)	108,324)
Profitability Ratio
Adjusted net profit margin²	4.79%	7.16%	4.24%	-4.04%	3.16%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to Valero Energy Corporation stockholders ÷ Revenues, includes excise taxes on sales by certain of foreign operations
= 100 × 8,835 ÷ 144,766 = 6.10%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Valero Energy Corporation stockholders ÷ Revenues, includes excise taxes on sales by certain of foreign operations
= 100 × 6,935 ÷ 144,766 = 4.79%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Valero Energy Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues, includes excise taxes on sales by certain of foreign operations	144,766)	176,383)	113,977)	64,912)	108,324)
Total assets	63,056)	60,982)	57,888)	51,774)	53,864)
Activity Ratio
Total asset turnover¹	2.30	2.89	1.97	1.25	2.01
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Revenues, includes excise taxes on sales by certain of foreign operations	144,766)	176,383)	113,977)	64,912)	108,324)
Adjusted total assets	67,456)	67,282)	63,088)	53,074)	56,364)
Activity Ratio
Adjusted total asset turnover²	2.15	2.62	1.81	1.22	1.92

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Revenues, includes excise taxes on sales by certain of foreign operations ÷ Total assets
= 144,766 ÷ 63,056 = 2.30

² Adjusted total asset turnover = Revenues, includes excise taxes on sales by certain of foreign operations ÷ Adjusted total assets
= 144,766 ÷ 67,456 = 2.15

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Valero Energy Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	63,056)	60,982)	57,888)	51,774)	53,864)
Total Valero Energy Corporation stockholders’ equity	26,346)	23,561)	18,430)	18,801)	21,803)
Solvency Ratio
Financial leverage¹	2.39	2.59	3.14	2.75	2.47
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted total assets	67,456)	67,282)	63,088)	53,074)	56,364)
Adjusted total Valero Energy Corporation stockholders’ equity	30,746)	29,861)	23,630)	20,101)	24,303)
Solvency Ratio
Adjusted financial leverage²	2.19	2.25	2.67	2.64	2.32

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Valero Energy Corporation stockholders’ equity
= 63,056 ÷ 26,346 = 2.39

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Valero Energy Corporation stockholders’ equity
= 67,456 ÷ 30,746 = 2.19

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Valero Energy Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Valero Energy Corporation stockholders	8,835)	11,528)	930)	(1,421)	2,422)
Total Valero Energy Corporation stockholders’ equity	26,346)	23,561)	18,430)	18,801)	21,803)
Profitability Ratio
ROE¹	33.53%	48.93%	5.05%	-7.56%	11.11%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Valero Energy Corporation stockholders	6,935)	12,628)	4,830)	(2,621)	3,422)
Adjusted total Valero Energy Corporation stockholders’ equity	30,746)	29,861)	23,630)	20,101)	24,303)
Profitability Ratio
Adjusted ROE²	22.56%	42.29%	20.44%	-13.04%	14.08%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income (loss) attributable to Valero Energy Corporation stockholders ÷ Total Valero Energy Corporation stockholders’ equity
= 100 × 8,835 ÷ 26,346 = 33.53%

² Adjusted ROE = 100 × Adjusted net income (loss) attributable to Valero Energy Corporation stockholders ÷ Adjusted total Valero Energy Corporation stockholders’ equity
= 100 × 6,935 ÷ 30,746 = 22.56%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Valero Energy Corp. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Valero Energy Corporation stockholders	8,835)	11,528)	930)	(1,421)	2,422)
Total assets	63,056)	60,982)	57,888)	51,774)	53,864)
Profitability Ratio
ROA¹	14.01%	18.90%	1.61%	-2.74%	4.50%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Valero Energy Corporation stockholders	6,935)	12,628)	4,830)	(2,621)	3,422)
Adjusted total assets	67,456)	67,282)	63,088)	53,074)	56,364)
Profitability Ratio
Adjusted ROA²	10.28%	18.77%	7.66%	-4.94%	6.07%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income (loss) attributable to Valero Energy Corporation stockholders ÷ Total assets
= 100 × 8,835 ÷ 63,056 = 14.01%

² Adjusted ROA = 100 × Adjusted net income (loss) attributable to Valero Energy Corporation stockholders ÷ Adjusted total assets
= 100 × 6,935 ÷ 67,456 = 10.28%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Valero Energy Corp. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Valero Energy Corp. (NYSE:VLO)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

Valero Energy Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Valero Energy Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)