Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
Valero Energy Corp., consolidated balance sheet: assets
US$ in millions
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).
The analyzed financial data reveals several notable trends across the assessed periods. Overall, total assets exhibit a steady increase from 53,864 million US$ at the end of 2019 to 63,056 million US$ by the end of 2023, indicating asset growth over the five-year span.
- Liquidity and Current Asset Components
- Cash and cash equivalents rose consistently, demonstrating enhanced liquidity, increasing from 2,583 million US$ in 2019 to 5,424 million US$ in 2023. Receivables, net, displayed fluctuating values with a significant dip in 2020 to 6,109 million US$ from 8,988 million US$ in 2019, followed by a recovery and growth reaching 12,525 million US$ in 2023. Inventories decreased in 2020 but then showed gradual increases year over year, culminating at 7,583 million US$. Prepaid expenses and other current assets almost doubled from 385 million US$ in 2019 to 689 million US$ in 2023. Collectively, current assets dipped in 2020 to 15,844 million US$ from 18,969 million US$, but then increased markedly to 26,221 million US$ in 2023.
- Noncurrent Assets
- Property, plant, and equipment, net, displayed a generally stable level, fluctuating slightly around the 30,000 million US$ mark but with a marginal decrease noted in 2023 (30,209 million US$) compared to prior years. Deferred turnaround and catalyst costs followed an upward trend, increasing from 1,778 million US$ in 2019 to 2,382 million US$. Operating lease right-of-use assets showed a small decline overall from 1,329 million US$ to 1,136 million US$. Investments in nonconsolidated joint ventures gradually decreased, indicating divestment or valuation adjustments from 942 million US$ down to 713 million US$. Purchased compliance credits appeared from 2021 onward, increasing from 222 million US$ to 612 million US$, which may reflect changes in regulatory or environmental compliance strategies. Goodwill remained constant at 260 million US$, while intangible assets, net, diminished steadily from 283 million US$ to 183 million US$. Other noncurrent assets generally increased, with deferred charges and other assets growing from 5,631 million US$ to 6,626 million US$ between 2019 and 2023. Noncurrent assets overall saw a slight growth from 34,895 million US$ to 36,835 million US$.
- Tax Receivables and Miscellaneous Items
- Income taxes receivable showed volatility with a sharp spike in 2020 reaching 1,024 million US$, a steep decline in 2021 to 21 million US$, and moderate recovery to 409 million US$ in 2023. A separate income taxes receivable line reported separately indicated a fluctuating and generally decreasing trend by 2023. Other receivables and miscellaneous categories rose significantly, notably with 'Other' increasing nearly two and a half times from 514 million US$ to 1,284 million US$ over the period.
In summary, the data reflects a company strengthening its liquidity position while expanding its current and noncurrent asset base. Fluctuations in receivables and tax-related assets may signal changes in operational dynamics or tax strategies, while consistent increases in deferred costs and purchased compliance credits suggest ongoing investments related to operational efficiency and regulatory compliance. The relatively stable levels of property, plant, and equipment and declines in intangible assets indicate a focus on maintaining core assets while perhaps amortizing legacy intangible items over time.