Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Valero Energy Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Current Ratio
- The current ratio demonstrated moderate fluctuations over the analyzed periods. Starting at 1.43 in Q1 2019, it experienced a slight decline reaching a trough of 1.18 in Q1 2022. A notable temporary increase occurred in mid-2020, peaking at 1.9 in Q3 2020. Post-2022, the ratio trended upward again, stabilizing around values slightly above 1.5 in 2023 and early 2024, indicating a generally stable short-term liquidity position with some variability.
- Quick Ratio
- The quick ratio followed a somewhat parallel pattern to the current ratio but with less pronounced volatility. Initially near 0.86 in early 2019, it dipped to a low of 0.79 in Q1 2020 and Q1 2022. Mid-2020 saw a sharp rise, reaching 1.19 in Q3 2020 before retracting. From 2022 onward, there was a gradual improvement, with the ratio moving above 1.0 by mid-2023 and maintaining levels near or slightly above this threshold into 2024, indicating improved liquidity when considering more liquid assets.
- Cash Ratio
- The cash ratio was consistently lower than both the current and quick ratios, reflecting more conservative liquidity based solely on cash and cash equivalents. It began at 0.22 in Q1 2019, showed a dip during early 2020, hitting lows around 0.13 in Q1 2022. Mid-2020 featured a notable spike to 0.5 in Q3, after which it fluctuated mildly but stayed generally below 0.4. The last reported quarters show a modest upward trend toward 0.34 in Q3 2024, suggesting a slight strengthening in the cash holdings relative to current liabilities.
Current Ratio
Valero Energy Corp., current ratio calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current assets | 23,976) | 27,115) | 25,674) | 26,221) | 26,577) | 23,695) | 23,335) | 24,133) | 22,696) | 27,409) | 23,313) | 21,165) | 18,790) | 19,372) | 17,591) | 15,844) | 15,422) | 12,762) | 11,465) | 18,969) | 17,033) | 17,811) | 18,480) | |||||||
| Current liabilities | 15,298) | 18,318) | 16,149) | 16,802) | 17,592) | 14,948) | 15,365) | 17,461) | 17,237) | 21,969) | 19,785) | 16,851) | 14,313) | 14,214) | 12,307) | 9,283) | 8,122) | 7,300) | 8,732) | 13,160) | 12,130) | 12,548) | 12,913) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Current ratio1 | 1.57 | 1.48 | 1.59 | 1.56 | 1.51 | 1.59 | 1.52 | 1.38 | 1.32 | 1.25 | 1.18 | 1.26 | 1.31 | 1.36 | 1.43 | 1.71 | 1.90 | 1.75 | 1.31 | 1.44 | 1.40 | 1.42 | 1.43 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 1.07 | 1.16 | 1.23 | 1.27 | 1.25 | 1.43 | 1.43 | 1.47 | 1.40 | 1.31 | 1.43 | 1.26 | 1.28 | 1.17 | 1.11 | 1.18 | 1.26 | 1.14 | 1.01 | — | — | — | — | |||||||
| ConocoPhillips | 1.30 | 1.33 | 1.35 | 1.43 | 1.66 | 1.41 | 1.39 | 1.46 | 1.46 | 1.54 | 1.51 | 1.34 | 1.93 | 2.11 | 2.03 | 2.25 | 2.38 | 2.69 | 2.16 | — | — | — | — | |||||||
| Exxon Mobil Corp. | 1.35 | 1.36 | 1.38 | 1.48 | 1.42 | 1.48 | 1.46 | 1.41 | 1.34 | 1.16 | 1.07 | 1.04 | 0.90 | 0.85 | 0.80 | 0.80 | 0.86 | 0.93 | 0.78 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 23,976 ÷ 15,298 = 1.57
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the liquidity position over the examined period.
- Current Assets
- Current assets showed a declining trend from the beginning of 2019, starting at 18,480 million USD as of March 31, 2019, and decreasing to a low of 11,465 million USD by March 31, 2020. Following this trough, there was a progressive increase, with current assets reaching a peak of 27,409 million USD in June 30, 2022. After mid-2022, the values exhibited minor fluctuations but generally remained elevated, with the most recent figure at 23,976 million USD by September 30, 2024.
- Current Liabilities
- Current liabilities trended downward from 12,913 million USD in March 31, 2019, to a low of 7,300 million USD in June 30, 2020. Subsequently, current liabilities rose consistently, peaking at 21,969 million USD in June 30, 2022. Thereafter, liabilities demonstrated some volatility but maintained relatively high levels, with the latest recorded value being 15,298 million USD as of September 30, 2024.
- Current Ratio
- The current ratio, reflecting the company's short-term liquidity, began at a healthy 1.43 in March 31, 2019, and experienced a decrease to 1.31 by the first quarter of 2020. Thereafter, a notable improvement was seen with the ratio reaching as high as 1.90 in September 30, 2020, indicating strengthened liquidity during this period. The ratio then declined steadily until declining to 1.18 in March 31, 2022, followed by a recovery phase, increasing gradually to 1.57 by September 30, 2024.
Overall, the data exhibit a period of contraction in both current assets and liabilities during early 2020, coincident with global economic disruptions, which impacted liquidity ratios. This was followed by a recovery phase with significant growth in current assets and liabilities, reflecting possibly expanded operations or changes in working capital management. The current ratio's fluctuations denote varying degrees of short-term financial strength, showing resilience with values consistently above 1.0, which suggests that, despite volatility, the company maintained a capacity to meet its short-term obligations throughout the observed periods.
Quick Ratio
Valero Energy Corp., quick ratio calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | 5,184) | 5,246) | 4,917) | 5,424) | 5,831) | 5,075) | 5,521) | 4,862) | 3,969) | 5,392) | 2,638) | 4,122) | 3,498) | 3,572) | 2,254) | 3,313) | 4,047) | 2,319) | 1,515) | 2,583) | 2,137) | 2,033) | 2,777) | |||||||
| Receivables, net | 11,073) | 13,145) | 12,150) | 12,525) | 12,566) | 10,888) | 9,688) | 11,919) | 11,581) | 14,439) | 13,080) | 10,378) | 8,627) | 9,132) | 9,014) | 6,109) | 5,601) | 4,152) | 5,392) | 8,904) | 7,994) | 9,050) | 8,289) | |||||||
| Total quick assets | 16,257) | 18,391) | 17,067) | 17,949) | 18,397) | 15,963) | 15,209) | 16,781) | 15,550) | 19,831) | 15,718) | 14,500) | 12,125) | 12,704) | 11,268) | 9,422) | 9,648) | 6,471) | 6,907) | 11,487) | 10,131) | 11,083) | 11,066) | |||||||
| Current liabilities | 15,298) | 18,318) | 16,149) | 16,802) | 17,592) | 14,948) | 15,365) | 17,461) | 17,237) | 21,969) | 19,785) | 16,851) | 14,313) | 14,214) | 12,307) | 9,283) | 8,122) | 7,300) | 8,732) | 13,160) | 12,130) | 12,548) | 12,913) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Quick ratio1 | 1.06 | 1.00 | 1.06 | 1.07 | 1.05 | 1.07 | 0.99 | 0.96 | 0.90 | 0.90 | 0.79 | 0.86 | 0.85 | 0.89 | 0.92 | 1.01 | 1.19 | 0.89 | 0.79 | 0.87 | 0.84 | 0.88 | 0.86 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 0.68 | 0.73 | 0.81 | 0.87 | 0.84 | 0.97 | 1.03 | 1.12 | 1.03 | 1.00 | 1.12 | 0.90 | 0.90 | 0.83 | 0.77 | 0.77 | 0.84 | 0.74 | 0.66 | — | — | — | — | |||||||
| ConocoPhillips | 1.08 | 1.10 | 1.13 | 1.21 | 1.46 | 1.19 | 1.20 | 1.27 | 1.27 | 1.34 | 1.29 | 1.10 | 1.66 | 1.86 | 1.81 | 1.98 | 2.04 | 2.29 | 1.72 | — | — | — | — | |||||||
| Exxon Mobil Corp. | 0.98 | 0.98 | 1.02 | 1.06 | 1.05 | 1.06 | 1.07 | 1.03 | 0.98 | 0.84 | 0.74 | 0.69 | 0.55 | 0.51 | 0.47 | 0.44 | 0.51 | 0.55 | 0.50 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 16,257 ÷ 15,298 = 1.06
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in liquidity and short-term financial stability over the observed periods.
- Total Quick Assets
- The total quick assets demonstrated considerable fluctuations throughout the timeline. Starting around 11,000 million US dollars in early 2019, the values declined notably during the first half of 2020, reaching a low near 6,400 million. This decline corresponds with the early pandemic period. Afterwards, there was a recovery trend; quick assets rose substantially, peaking above 19,800 million in mid-2022. Post this peak, the figure experienced some volatility but remained relatively high, fluctuating between approximately 15,000 and 18,000 million in subsequent quarters up to late 2024.
- Current Liabilities
- Current liabilities followed a generally increasing trajectory across the period, with some variability. Initial figures hovered around 12,000 to 13,000 million US dollars in early 2019 but dropped sharply to below 8,000 million in mid-2020, mirroring the drop in quick assets. From late 2020 onward, current liabilities steadily grew, reaching a peak close to 22,000 million around mid-2022, before declining somewhat in the following quarters. Despite these fluctuations, liabilities remained at a generally elevated level compared to the starting period.
- Quick Ratio
- The quick ratio, reflecting immediate liquidity by comparing quick assets to current liabilities, exhibited periods of stress followed by stabilization. The ratio started slightly below 1.0 in early 2019 and dropped to a low of 0.79 in early 2020, indicating reduced short-term liquidity amid rising liabilities and falling liquid assets during that phase. Subsequently, there was a recovery and improvement pattern. By the end of 2020 and during 2021, the quick ratio fluctuated near 0.85 to 0.92 before trending upwards through 2023, reaching values at or just above 1.0. This suggests a strengthening liquidity position, with quick assets approximating or exceeding current liabilities in recent quarters. The ratio remained around or above 1.0 towards the end of the data series, indicating improved capacity to meet short-term obligations.
In summary, the data shows a temporary decline in liquidity metrics in early 2020, likely connected to external economic disruptions, followed by a robust recovery and improvement in the company's quick assets and short-term financial health. Both quick assets and current liabilities grew significantly after mid-2020, but the quick ratio indicates that liquid assets were generally sufficient to cover current liabilities from 2023 onwards, reflecting a stronger liquidity position in the most recent periods.
Cash Ratio
Valero Energy Corp., cash ratio calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Cash and cash equivalents | 5,184) | 5,246) | 4,917) | 5,424) | 5,831) | 5,075) | 5,521) | 4,862) | 3,969) | 5,392) | 2,638) | 4,122) | 3,498) | 3,572) | 2,254) | 3,313) | 4,047) | 2,319) | 1,515) | 2,583) | 2,137) | 2,033) | 2,777) | |||||||
| Total cash assets | 5,184) | 5,246) | 4,917) | 5,424) | 5,831) | 5,075) | 5,521) | 4,862) | 3,969) | 5,392) | 2,638) | 4,122) | 3,498) | 3,572) | 2,254) | 3,313) | 4,047) | 2,319) | 1,515) | 2,583) | 2,137) | 2,033) | 2,777) | |||||||
| Current liabilities | 15,298) | 18,318) | 16,149) | 16,802) | 17,592) | 14,948) | 15,365) | 17,461) | 17,237) | 21,969) | 19,785) | 16,851) | 14,313) | 14,214) | 12,307) | 9,283) | 8,122) | 7,300) | 8,732) | 13,160) | 12,130) | 12,548) | 12,913) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||
| Cash ratio1 | 0.34 | 0.29 | 0.30 | 0.32 | 0.33 | 0.34 | 0.36 | 0.28 | 0.23 | 0.25 | 0.13 | 0.24 | 0.24 | 0.25 | 0.18 | 0.36 | 0.50 | 0.32 | 0.17 | 0.20 | 0.18 | 0.16 | 0.22 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | 0.13 | 0.12 | 0.19 | 0.25 | 0.18 | 0.32 | 0.47 | 0.52 | 0.42 | 0.32 | 0.38 | 0.21 | 0.24 | 0.27 | 0.26 | 0.25 | 0.35 | 0.33 | 0.30 | — | — | — | — | |||||||
| ConocoPhillips | 0.63 | 0.58 | 0.60 | 0.66 | 0.91 | 0.71 | 0.75 | 0.72 | 0.74 | 0.67 | 0.61 | 0.55 | 1.14 | 1.31 | 1.18 | 1.46 | 1.58 | 1.92 | 1.35 | — | — | — | — | |||||||
| Exxon Mobil Corp. | 0.39 | 0.37 | 0.46 | 0.48 | 0.46 | 0.48 | 0.49 | 0.43 | 0.41 | 0.24 | 0.15 | 0.12 | 0.08 | 0.06 | 0.06 | 0.08 | 0.16 | 0.22 | 0.18 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,184 ÷ 15,298 = 0.34
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends regarding liquidity and short-term obligations over the observed periods.
- Total Cash Assets
-
Total cash assets demonstrated considerable variability throughout the periods. Initially, cash assets declined from 2,777 million USD in March 2019 to a trough of 1,515 million USD in March 2020. Following this low, there was a significant increase with fluctuations, reaching a peak of 5,392 million USD in June 2022. Afterward, cash levels somewhat declined but remained relatively elevated compared to the earlier periods, fluctuating around the 5,000 million USD mark in the most recent quarters.
- Current Liabilities
-
Current liabilities showed an overall increasing trend. Starting at 12,913 million USD in March 2019, liabilities decreased temporarily during the early 2020 quarters, reaching a low of 7,300 million USD in June 2020, coinciding with the period when cash assets were at their lowest. From this point, liabilities grew steadily, peaking at nearly 21,969 million USD in June 2022. Thereafter, liabilities slightly decreased but remained elevated, fluctuating between approximately 15,000 million and 18,000 million USD in recent quarters.
- Cash Ratio
-
The cash ratio, representing the company's ability to cover current liabilities with cash and cash equivalents, exhibited significant fluctuation. It began relatively low at 0.22 in March 2019, dropped further to 0.16 in June 2019, and then increased significantly, reaching a high of 0.50 in September 2020. This peak corresponds with the period of increased cash assets and reduced liabilities earlier that year. Subsequently, the ratio declined to lows around 0.13 by March 2022, coinciding with rising liabilities and moderately reduced cash. In the more recent periods, the cash ratio stabilized around the 0.3 to 0.36 range, indicating improved liquidity relative to earlier years but not reaching the previous peak levels.
Overall, the data suggest that the company experienced a liquidity tightening phase during early 2020, followed by improvement in cash holdings and an increase in short-term liabilities. While cash assets have grown substantially since their low in early 2020, current liabilities have also increased markedly, resulting in a moderate cash ratio in recent quarters. This indicates a cautious improvement in liquidity management but still reflects a balanced approach to working capital and short-term obligations.