An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

Valero Energy Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	63,056)	60,982)	57,888)	51,774)	53,864)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)
Total assets (adjusted)	63,056)	60,982)	57,888)	51,774)	53,864)
Adjustment to Total Debt
Total debt (as reported)	11,524)	11,635)	13,870)	14,677)	9,672)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	—)	—)
Add: Current operating lease liabilities	360)	311)	315)	285)	331)
Add: Noncurrent operating lease liabilities	753)	776)	940)	885)	959)
Total debt (adjusted)	12,637)	12,722)	15,125)	15,847)	10,962)

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, 2} Equal to total present value of future operating lease payments.

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
Total Asset Turnover¹
Reported total asset turnover	2.30	2.89	1.97	1.25	2.01
Adjusted total asset turnover	2.30	2.89	1.97	1.25	2.01
Debt to Equity²
Reported debt to equity	0.44	0.49	0.75	0.78	0.44
Adjusted debt to equity	0.48	0.54	0.82	0.84	0.50
Return on Assets³ (ROA)
Reported ROA	14.01%	18.90%	1.61%	-2.74%	4.50%
Adjusted ROA	14.01%	18.90%	1.61%	-2.74%	4.50%

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 See details »

² See details »

³ See details »

Financial 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.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Valero Energy Corp. adjusted debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as 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.

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)
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 for Operating Leases
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	63,056)	60,982)	57,888)	51,774)	53,864)
Activity Ratio
Adjusted total asset turnover²	2.30	2.89	1.97	1.25	2.01

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 ÷ 63,056 = 2.30

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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 debt	11,524)	11,635)	13,870)	14,677)	9,672)
Total Valero Energy Corporation stockholders’ equity	26,346)	23,561)	18,430)	18,801)	21,803)
Solvency Ratio
Debt to equity¹	0.44	0.49	0.75	0.78	0.44
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt	12,637)	12,722)	15,125)	15,847)	10,962)
Total Valero Energy Corporation stockholders’ equity	26,346)	23,561)	18,430)	18,801)	21,803)
Solvency Ratio
Adjusted debt to equity²	0.48	0.54	0.82	0.84	0.50

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 Debt to equity = Total debt ÷ Total Valero Energy Corporation stockholders’ equity
= 11,524 ÷ 26,346 = 0.44

² Adjusted debt to equity = Adjusted total debt ÷ Total Valero Energy Corporation stockholders’ equity
= 12,637 ÷ 26,346 = 0.48

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Valero Energy Corp. adjusted debt-to-equity 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)
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 for Operating Leases
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Valero Energy Corporation stockholders	8,835)	11,528)	930)	(1,421)	2,422)
Adjusted total assets	63,056)	60,982)	57,888)	51,774)	53,864)
Profitability Ratio
Adjusted ROA²	14.01%	18.90%	1.61%	-2.74%	4.50%

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

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as 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.

Valero Energy Corp. (NYSE:VLO)

Analysis of Operating Leases

Adjustments to Financial Statements for Operating Leases

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

Adjusted Financial Ratios for Operating Leases (Summary)

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

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)