Stock Analysis on Net

Valero Energy Corp. (NYSE:VLO)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Valero Energy Corp., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Turnover Ratios
Inventory turnover 17.39 23.64 17.69 10.87 14.76
Receivables turnover 13.12 16.39 11.43 13.50 13.44
Payables turnover 10.49 12.54 8.87 10.79 10.15
Working capital turnover 15.37 26.44 26.42 9.89 18.65
Average No. Days
Average inventory processing period 21 15 21 34 25
Add: Average receivable collection period 28 22 32 27 27
Operating cycle 49 37 53 61 52
Less: Average payables payment period 35 29 41 34 36
Cash conversion cycle 14 8 12 27 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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Valero Energy Corp. inventory turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. Valero Energy Corp. receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Valero Energy Corp. payables turnover ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Valero Energy Corp. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Valero Energy Corp. number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Valero Energy Corp. operating cycle improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Valero Energy Corp. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Inventory Turnover

Valero Energy Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of sales 131,834 159,587 110,848 65,652 103,546
Inventories 7,583 6,752 6,265 6,038 7,013
Short-term Activity Ratio
Inventory turnover1 17.39 23.64 17.69 10.87 14.76
Benchmarks
Inventory Turnover, Competitors2
Chevron Corp. 22.86 28.58 24.68 16.64 23.92
ConocoPhillips 40.16 64.39 37.94 18.75 31.74
Exxon Mobil Corp. 13.32 16.32 14.73 9.47 13.79
Marathon Petroleum Corp. 13.80 17.18 13.66 8.22 10.76
Occidental Petroleum Corp. 13.97 17.79 14.06 9.38 14.09
Inventory Turnover, Sector
Oil, Gas & Consumable Fuels 16.21 20.58 17.07 10.64 15.01
Inventory Turnover, Industry
Energy 15.45 19.51 16.27 10.31 14.32

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).

1 2023 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 131,834 ÷ 7,583 = 17.39

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Valero Energy Corp. inventory turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Receivables Turnover

Valero Energy Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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
Receivables after allowance for credit losses 11,038 10,761 9,968 4,807 8,058
Short-term Activity Ratio
Receivables turnover1 13.12 16.39 11.43 13.50 13.44
Benchmarks
Receivables Turnover, Competitors2
Chevron Corp. 9.88 11.52 8.45 8.24 10.50
ConocoPhillips 10.28 11.09 7.00 7.13 9.97
Exxon Mobil Corp. 11.05 12.14 10.29 10.93 12.11
Marathon Petroleum Corp. 12.77 13.17 10.87 12.11 15.75
Occidental Petroleum Corp. 8.84 8.56 6.17 8.42 3.20
Receivables Turnover, Sector
Oil, Gas & Consumable Fuels 11.15 12.41 9.58 10.30 11.35
Receivables Turnover, Industry
Energy 10.55 11.79 9.24 9.67 10.53

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).

1 2023 Calculation
Receivables turnover = Revenues, includes excise taxes on sales by certain of foreign operations ÷ Receivables after allowance for credit losses
= 144,766 ÷ 11,038 = 13.12

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Valero Energy Corp. receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Payables Turnover

Valero Energy Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of sales 131,834 159,587 110,848 65,652 103,546
Accounts payable 12,567 12,728 12,495 6,082 10,205
Short-term Activity Ratio
Payables turnover1 10.49 12.54 8.87 10.79 10.15
Benchmarks
Payables Turnover, Competitors2
Chevron Corp. 9.64 12.44 9.46 8.63 9.92
ConocoPhillips 11.04 12.84 9.16 7.04 10.25
Exxon Mobil Corp. 10.71 12.02 10.39 10.20 10.35
Marathon Petroleum Corp. 9.34 9.91 8.03 8.42 9.48
Occidental Petroleum Corp. 7.75 9.09 6.66 5.96 2.91
Payables Turnover, Sector
Oil, Gas & Consumable Fuels 10.11 11.75 9.27 9.19 9.35
Payables Turnover, Industry
Energy 9.89 11.50 9.15 9.07 9.14

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).

1 2023 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 131,834 ÷ 12,567 = 10.49

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Valero Energy Corp. payables turnover ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Working Capital Turnover

Valero Energy Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current assets 26,221 24,133 21,165 15,844 18,969
Less: Current liabilities 16,802 17,461 16,851 9,283 13,160
Working capital 9,419 6,672 4,314 6,561 5,809
 
Revenues, includes excise taxes on sales by certain of foreign operations 144,766 176,383 113,977 64,912 108,324
Short-term Activity Ratio
Working capital turnover1 15.37 26.44 26.42 9.89 18.65
Benchmarks
Working Capital Turnover, Competitors2
Chevron Corp. 22.20 14.61 22.40 24.25 77.75
ConocoPhillips 12.98 13.30 11.37 2.80 3.30
Exxon Mobil Corp. 10.70 13.95 110.19
Marathon Petroleum Corp. 12.38 11.66 9.52 5.53 30.81
Occidental Petroleum Corp. 32.45 13.76 29.88 5.46
Working Capital Turnover, Sector
Oil, Gas & Consumable Fuels 13.96 14.98 22.86 23.50 60.26
Working Capital Turnover, Industry
Energy 13.57 14.76 22.01 21.93 51.98

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).

1 2023 Calculation
Working capital turnover = Revenues, includes excise taxes on sales by certain of foreign operations ÷ Working capital
= 144,766 ÷ 9,419 = 15.37

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Valero Energy Corp. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Average Inventory Processing Period

Valero Energy Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Inventory turnover 17.39 23.64 17.69 10.87 14.76
Short-term Activity Ratio (no. days)
Average inventory processing period1 21 15 21 34 25
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Chevron Corp. 16 13 15 22 15
ConocoPhillips 9 6 10 19 11
Exxon Mobil Corp. 27 22 25 39 26
Marathon Petroleum Corp. 26 21 27 44 34
Occidental Petroleum Corp. 26 21 26 39 26
Average Inventory Processing Period, Sector
Oil, Gas & Consumable Fuels 23 18 21 34 24
Average Inventory Processing Period, Industry
Energy 24 19 22 35 25

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).

1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 17.39 = 21

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

Valero Energy Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Receivables turnover 13.12 16.39 11.43 13.50 13.44
Short-term Activity Ratio (no. days)
Average receivable collection period1 28 22 32 27 27
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Chevron Corp. 37 32 43 44 35
ConocoPhillips 36 33 52 51 37
Exxon Mobil Corp. 33 30 35 33 30
Marathon Petroleum Corp. 29 28 34 30 23
Occidental Petroleum Corp. 41 43 59 43 114
Average Receivable Collection Period, Sector
Oil, Gas & Consumable Fuels 33 29 38 35 32
Average Receivable Collection Period, Industry
Energy 35 31 40 38 35

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).

1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 13.12 = 28

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Valero Energy Corp. number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Operating Cycle

Valero Energy Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 21 15 21 34 25
Average receivable collection period 28 22 32 27 27
Short-term Activity Ratio
Operating cycle1 49 37 53 61 52
Benchmarks
Operating Cycle, Competitors2
Chevron Corp. 53 45 58 66 50
ConocoPhillips 45 39 62 70 48
Exxon Mobil Corp. 60 52 60 72 56
Marathon Petroleum Corp. 55 49 61 74 57
Occidental Petroleum Corp. 67 64 85 82 140
Operating Cycle, Sector
Oil, Gas & Consumable Fuels 56 47 59 69 56
Operating Cycle, Industry
Energy 59 50 62 73 60

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).

1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 21 + 28 = 49

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Valero Energy Corp. operating cycle improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Average Payables Payment Period

Valero Energy Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Payables turnover 10.49 12.54 8.87 10.79 10.15
Short-term Activity Ratio (no. days)
Average payables payment period1 35 29 41 34 36
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Chevron Corp. 38 29 39 42 37
ConocoPhillips 33 28 40 52 36
Exxon Mobil Corp. 34 30 35 36 35
Marathon Petroleum Corp. 39 37 45 43 38
Occidental Petroleum Corp. 47 40 55 61 126
Average Payables Payment Period, Sector
Oil, Gas & Consumable Fuels 36 31 39 40 39
Average Payables Payment Period, Industry
Energy 37 32 40 40 40

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).

1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.49 = 35

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

Cash Conversion Cycle

Valero Energy Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 21 15 21 34 25
Average receivable collection period 28 22 32 27 27
Average payables payment period 35 29 41 34 36
Short-term Activity Ratio
Cash conversion cycle1 14 8 12 27 16
Benchmarks
Cash Conversion Cycle, Competitors2
Chevron Corp. 15 16 19 24 13
ConocoPhillips 12 11 22 18 12
Exxon Mobil Corp. 26 22 25 36 21
Marathon Petroleum Corp. 16 12 16 31 19
Occidental Petroleum Corp. 20 24 30 21 14
Cash Conversion Cycle, Sector
Oil, Gas & Consumable Fuels 20 16 20 29 17
Cash Conversion Cycle, Industry
Energy 22 18 22 33 20

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).

1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 21 + 2835 = 14

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Valero Energy Corp. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.