Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Valero Energy Corp., solvency 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).
- Debt to Equity Ratio
- Over the observed periods, this ratio initially rose from 0.61 to a peak near 0.83 in mid-2021, indicating increased reliance on debt relative to equity. From late 2021 onward, a steady decline is visible, dropping to around 0.42-0.44 in early to mid-2024, suggesting a gradual reduction in financial leverage and a stronger equity base.
- Debt to Capital Ratio
- This ratio followed a pattern similar to the debt to equity ratio. It increased from 0.38 in early 2020 to about 0.45 in 2021, then steadily decreased to approximately 0.29-0.30 by 2024. The downward trend indicates an improving capital structure with lower debt proportion relative to total capital.
- Debt to Assets Ratio
- The debt to assets ratio peaked around 0.29 in late 2020 and declined steadily to a range near 0.17-0.18 by 2024. This trend reflects a reduction in leverage, with debt constituting a smaller fraction of the company's total assets over time, aligning with observed improvements in other leverage measures.
- Financial Leverage Ratio
- This measure saw an increase from around 2.5 to above 3.1 during 2020 and 2021, indicating higher use of debt combined with equity in financing assets. Beginning in late 2021, the ratio decreased to near 2.4-2.5 by 2024, reflecting a modest reduction in reliance on leverage. However, the values remain elevated compared to early 2020, implying continued leverage use above initial levels.
- Interest Coverage Ratio
- The interest coverage ratio exhibited significant volatility. It started moderately at 2.92 in early 2020, spiked to 4.55 in mid-2020, then plunged to negative values by the end of 2020 and early 2021, indicating difficulties in covering interest expenses. From mid-2021 onwards, the ratio improved markedly, reaching a peak of 33.17 by early 2023, before gradually declining to 9.64 by late 2024. Overall, this suggests recovery from financial stress with strong earnings relative to interest obligations in recent years, though some softening was evident towards the end of the period.
Debt Ratios
Coverage Ratios
Debt to Equity
Valero Energy Corp., debt to equity 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of debt and finance lease obligations | 1,016) | 995) | 853) | 1,406) | 1,334) | 1,193) | 1,258) | 1,109) | 1,006) | 1,022) | 1,295) | 1,264) | 1,162) | 1,044) | 734) | 723) | 636) | 587) | 886) | ||||||
| Debt and finance lease obligations, less current portion | 9,790) | 9,746) | 10,044) | 10,118) | 10,107) | 10,130) | 10,173) | 10,526) | 10,570) | 11,858) | 11,866) | 12,606) | 13,071) | 13,636) | 13,930) | 13,954) | 14,577) | 12,090) | 10,574) | ||||||
| Total debt | 10,806) | 10,741) | 10,897) | 11,524) | 11,441) | 11,323) | 11,431) | 11,635) | 11,576) | 12,880) | 13,161) | 13,870) | 14,233) | 14,680) | 14,664) | 14,677) | 15,213) | 12,677) | 11,460) | ||||||
| Total Valero Energy Corporation stockholders’ equity | 25,253) | 25,443) | 26,057) | 26,346) | 25,975) | 25,851) | 24,977) | 23,561) | 21,912) | 20,969) | 18,821) | 18,430) | 17,476) | 17,651) | 17,801) | 18,801) | 19,223) | 19,847) | 18,842) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | 0.43 | 0.42 | 0.42 | 0.44 | 0.44 | 0.44 | 0.46 | 0.49 | 0.53 | 0.61 | 0.70 | 0.75 | 0.81 | 0.83 | 0.82 | 0.78 | 0.79 | 0.64 | 0.61 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | 0.17 | 0.15 | 0.14 | 0.13 | 0.12 | 0.14 | 0.15 | 0.15 | 0.15 | 0.17 | 0.20 | 0.23 | 0.27 | 0.32 | 0.34 | — | — | — | — | ||||||
| ConocoPhillips | 0.37 | 0.37 | 0.37 | 0.38 | 0.40 | 0.35 | 0.35 | 0.35 | 0.35 | 0.34 | 0.38 | 0.44 | 0.45 | 0.45 | 0.46 | — | — | — | — | ||||||
| Exxon Mobil Corp. | 0.16 | 0.16 | 0.20 | 0.20 | 0.21 | 0.21 | 0.21 | 0.21 | 0.24 | 0.26 | 0.28 | 0.28 | 0.35 | 0.38 | 0.40 | — | — | — | — | ||||||
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).
1 Q3 2024 Calculation
Debt to equity = Total debt ÷ Total Valero Energy Corporation stockholders’ equity
= 10,806 ÷ 25,253 = 0.43
2 Click competitor name to see calculations.
The analysis of the financial trends reveals several key observations regarding the company's debt, equity, and leverage over the given periods.
- Total Debt
-
Total debt demonstrated an overall downward trend from the beginning to the end of the analysis period. Starting at $11,460 million, debt increased to a peak of $15,213 million in September 2020 before consistently decreasing through subsequent quarters. By September 2024, total debt approximated $10,806 million, marking a significant reduction compared to the earlier peak. This decline signifies ongoing debt management efforts or possible debt repayments over time.
- Total Stockholders’ Equity
-
Total stockholders’ equity fluctuated throughout the periods but exhibited a general upward trajectory from 2020 into 2023. The equity value began at $18,842 million in March 2020, with some fluctuations through late 2021. From March 2022 onward, equity showed consistent growth, reaching a maximum of approximately $26,346 million in December 2023. Toward the latter part of the data set, equity experienced a slight decrease ending at about $25,253 million in September 2024. This growth trend suggests accumulating retained earnings, asset appreciation, or equity issuances that strengthened the company's net worth over time.
- Debt to Equity Ratio
-
The debt to equity ratio exhibited a notable decline across the period, reflecting reduced leverage and improved financial stability. Initially, it rose from 0.61 in March 2020 to a peak near 0.83 in June 2021, indicating increasing reliance on debt relative to equity. Subsequently, the ratio decreased steadily, reaching a low point of approximately 0.42 between mid-2023 and mid-2024. A minor uptick appeared in the last recorded quarter. This downward trend signals a strategic reduction in debt compared to equity, thereby enhancing the company’s solvency and potentially lowering financial risk.
In summary, the company exhibited prudent financial management characterized by a reduction in total debt coupled with a strengthening equity base, leading to improved leverage ratios. These trends suggest an emphasis on financial stability and decreased dependency on borrowed capital over the analyzed timeframe.
Debt to Capital
Valero Energy Corp., debt to capital calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of debt and finance lease obligations | 1,016) | 995) | 853) | 1,406) | 1,334) | 1,193) | 1,258) | 1,109) | 1,006) | 1,022) | 1,295) | 1,264) | 1,162) | 1,044) | 734) | 723) | 636) | 587) | 886) | ||||||
| Debt and finance lease obligations, less current portion | 9,790) | 9,746) | 10,044) | 10,118) | 10,107) | 10,130) | 10,173) | 10,526) | 10,570) | 11,858) | 11,866) | 12,606) | 13,071) | 13,636) | 13,930) | 13,954) | 14,577) | 12,090) | 10,574) | ||||||
| Total debt | 10,806) | 10,741) | 10,897) | 11,524) | 11,441) | 11,323) | 11,431) | 11,635) | 11,576) | 12,880) | 13,161) | 13,870) | 14,233) | 14,680) | 14,664) | 14,677) | 15,213) | 12,677) | 11,460) | ||||||
| Total Valero Energy Corporation stockholders’ equity | 25,253) | 25,443) | 26,057) | 26,346) | 25,975) | 25,851) | 24,977) | 23,561) | 21,912) | 20,969) | 18,821) | 18,430) | 17,476) | 17,651) | 17,801) | 18,801) | 19,223) | 19,847) | 18,842) | ||||||
| Total capital | 36,059) | 36,184) | 36,954) | 37,870) | 37,416) | 37,174) | 36,408) | 35,196) | 33,488) | 33,849) | 31,982) | 32,300) | 31,709) | 32,331) | 32,465) | 33,478) | 34,436) | 32,524) | 30,302) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 0.30 | 0.30 | 0.29 | 0.30 | 0.31 | 0.30 | 0.31 | 0.33 | 0.35 | 0.38 | 0.41 | 0.43 | 0.45 | 0.45 | 0.45 | 0.44 | 0.44 | 0.39 | 0.38 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | 0.14 | 0.13 | 0.12 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.13 | 0.15 | 0.17 | 0.18 | 0.22 | 0.24 | 0.26 | — | — | — | — | ||||||
| ConocoPhillips | 0.27 | 0.27 | 0.27 | 0.28 | 0.29 | 0.26 | 0.26 | 0.26 | 0.26 | 0.25 | 0.28 | 0.31 | 0.31 | 0.31 | 0.32 | — | — | — | — | ||||||
| Exxon Mobil Corp. | 0.14 | 0.14 | 0.16 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.20 | 0.21 | 0.22 | 0.22 | 0.26 | 0.28 | 0.29 | — | — | — | — | ||||||
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).
1 Q3 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 10,806 ÷ 36,059 = 0.30
2 Click competitor name to see calculations.
The analysis of the financial data over the examined period reveals distinct trends in the company's debt levels, capital structure, and leverage ratios.
- Total Debt
- The total debt exhibited a general declining trend from early 2020 through late 2024. Initially, there was an increase in total debt, reaching a peak in the third quarter of 2020 at 15,213 million US dollars. Following this peak, the debt level gradually decreased, stabilizing around 11,500 million US dollars toward the end of 2023 and remaining relatively steady thereafter, with slight fluctuations through 2024.
- Total Capital
- Total capital showed an overall increasing trend from the first quarter of 2020 through the end of 2023, rising from approximately 30,302 million US dollars to a peak near 37,870 million in the fourth quarter of 2023. However, there was a modest decrease observed in 2024, with capital descending to about 36,059 million US dollars by the third quarter of 2024. The changes indicate an expansion of the capital base over the long term with some recent contraction.
- Debt to Capital Ratio
- The debt to capital ratio started at 0.38 in the first quarter of 2020 and increased, reaching its highest at 0.45 during much of 2021. From 2022 onward, a consistent decline is observed, with the ratio falling to approximately 0.30 by 2024. This declining leverage ratio suggests a strategic reduction in dependency on debt financing relative to the overall capital, reflecting an improvement in financial stability and solvency.
Overall, the data depict a deliberate management approach towards deleveraging after an initial increase in debt in early 2020. The growth in total capital alongside the reduction in debt levels and leverage ratios indicates a strengthening capital structure over time. The moderate dip in total capital post-2023 may warrant monitoring, although the sustained lowered leverage ratio suggests continued conservative financial management.
Debt to Assets
Valero Energy Corp., debt to assets 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of debt and finance lease obligations | 1,016) | 995) | 853) | 1,406) | 1,334) | 1,193) | 1,258) | 1,109) | 1,006) | 1,022) | 1,295) | 1,264) | 1,162) | 1,044) | 734) | 723) | 636) | 587) | 886) | ||||||
| Debt and finance lease obligations, less current portion | 9,790) | 9,746) | 10,044) | 10,118) | 10,107) | 10,130) | 10,173) | 10,526) | 10,570) | 11,858) | 11,866) | 12,606) | 13,071) | 13,636) | 13,930) | 13,954) | 14,577) | 12,090) | 10,574) | ||||||
| Total debt | 10,806) | 10,741) | 10,897) | 11,524) | 11,441) | 11,323) | 11,431) | 11,635) | 11,576) | 12,880) | 13,161) | 13,870) | 14,233) | 14,680) | 14,664) | 14,677) | 15,213) | 12,677) | 11,460) | ||||||
| Total assets | 60,382) | 63,615) | 62,574) | 63,056) | 63,175) | 60,667) | 60,177) | 60,982) | 59,329) | 64,345) | 60,402) | 57,888) | 54,691) | 55,456) | 53,614) | 51,774) | 51,732) | 49,099) | 47,747) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.18 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.19 | 0.20 | 0.20 | 0.22 | 0.24 | 0.26 | 0.26 | 0.27 | 0.28 | 0.29 | 0.26 | 0.24 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | 0.10 | 0.09 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.12 | 0.13 | 0.16 | 0.18 | 0.19 | — | — | — | — | ||||||
| ConocoPhillips | 0.19 | 0.19 | 0.19 | 0.20 | 0.20 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.20 | 0.22 | 0.23 | 0.23 | 0.24 | — | — | — | — | ||||||
| Exxon Mobil Corp. | 0.09 | 0.09 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | 0.17 | 0.18 | 0.19 | — | — | — | — | ||||||
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).
1 Q3 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 10,806 ÷ 60,382 = 0.18
2 Click competitor name to see calculations.
The financial data reveals several notable trends concerning the company's leverage and asset base over the examined periods.
- Total Debt
- The total debt exhibited fluctuations over the quarters. Initially, there was a rising trend from approximately 11.46 billion USD to a peak near 15.21 billion USD by late 2020. Following this peak, a gradual decline in total debt is evident, reducing to approximately 10.8 billion USD by the third quarter of 2024. This pattern suggests active debt management, with the company likely focusing on deleveraging or refinancing to optimize its capital structure after reaching a high debt level in 2020.
- Total Assets
- The total assets showed a generally increasing trend over time, growing from about 47.7 billion USD at the beginning of the period to a high of around 63.2 billion USD by the end of 2023. However, there is a slight decrease observed toward mid-2024, where assets declined to approximately 60.4 billion USD. This reflects overall asset growth with some recent contraction, which could be attributable to asset sales, depreciation, or market valuation changes.
- Debt to Assets Ratio
- The debt to assets ratio trends downward consistently throughout the period. Starting at 0.24 in early 2020, the ratio peaked at 0.29 in late 2020 alongside the total debt increase, then steadily decreased to approximately 0.18 by mid to late 2024. This declining ratio indicates an improving leverage position, driven by the combined effect of reducing debt levels and increasing asset base, suggesting enhanced financial stability and reduced risk exposure.
Overall, the data indicates a strategic reduction in leverage following a peak in total debt during 2020, accompanied by growth in total assets over most of the period. The lowering debt to asset ratio points to a strengthening balance sheet and potentially improved creditworthiness. Recent slight asset decreases warrant monitoring to determine if these represent temporary adjustments or a longer-term trend.
Financial Leverage
Valero Energy Corp., financial leverage 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | 60,382) | 63,615) | 62,574) | 63,056) | 63,175) | 60,667) | 60,177) | 60,982) | 59,329) | 64,345) | 60,402) | 57,888) | 54,691) | 55,456) | 53,614) | 51,774) | 51,732) | 49,099) | 47,747) | ||||||
| Total Valero Energy Corporation stockholders’ equity | 25,253) | 25,443) | 26,057) | 26,346) | 25,975) | 25,851) | 24,977) | 23,561) | 21,912) | 20,969) | 18,821) | 18,430) | 17,476) | 17,651) | 17,801) | 18,801) | 19,223) | 19,847) | 18,842) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | 2.39 | 2.50 | 2.40 | 2.39 | 2.43 | 2.35 | 2.41 | 2.59 | 2.71 | 3.07 | 3.21 | 3.14 | 3.13 | 3.14 | 3.01 | 2.75 | 2.69 | 2.47 | 2.53 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | 1.66 | 1.64 | 1.63 | 1.63 | 1.60 | 1.59 | 1.60 | 1.62 | 1.64 | 1.68 | 1.70 | 1.72 | 1.77 | 1.82 | 1.83 | — | — | — | — | ||||||
| ConocoPhillips | 1.94 | 1.93 | 1.93 | 1.95 | 1.96 | 1.89 | 1.91 | 1.95 | 1.93 | 1.87 | 1.90 | 2.00 | 1.98 | 1.93 | 1.94 | — | — | — | — | ||||||
| Exxon Mobil Corp. | 1.72 | 1.72 | 1.84 | 1.84 | 1.86 | 1.82 | 1.86 | 1.89 | 1.99 | 2.07 | 2.10 | 2.01 | 2.10 | 2.13 | 2.13 | — | — | — | — | ||||||
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).
1 Q3 2024 Calculation
Financial leverage = Total assets ÷ Total Valero Energy Corporation stockholders’ equity
= 60,382 ÷ 25,253 = 2.39
2 Click competitor name to see calculations.
- Total assets
- Over the observed periods, total assets exhibited a general upward trend, increasing from approximately $47.7 billion in the first quarter of 2020 to a peak slightly above $64 billion in the second quarter of 2022. Following this peak, the total assets displayed fluctuations with a modest overall decline toward the end of the period, finishing around $60.4 billion in the third quarter of 2024. This pattern suggests periods of asset growth followed by stabilization and moderate reduction.
- Total stockholders’ equity
- Stockholders’ equity showed an initial decline from about $18.8 billion in early 2020 to a trough near $17.5 billion in the third quarter of 2021. Afterward, there was a sustained increase reaching a maximum of approximately $26.3 billion in the last quarter of 2023. However, equity slightly decreased again in 2024, ending near $25.3 billion. This fluctuation indicates a recovery and strengthening of equity after the initial decline in 2020 and early 2021, followed by relative stability.
- Financial leverage
- The financial leverage ratio started at 2.53 in the first quarter of 2020 and increased steadily to a peak of about 3.21 in the first quarter of 2022. This suggests an increase in the proportion of total assets financed by debt or liabilities during that time. From early 2022 onwards, financial leverage decreased to levels around 2.4–2.5, indicating a deleveraging trend or improvement in equity relative to assets. The ratio remained relatively stable near these values toward the end of the period.
- Overall insights
- The data reflects a period of growth in total assets and equity following the initial challenges around 2020, likely related to financial or market conditions impacting the company. The increase in financial leverage in 2021 and early 2022 suggests that the company employed more debt relative to equity to finance asset growth. The subsequent reduction in leverage implies efforts to reduce debt or enhance equity, resulting in a more balanced capital structure by 2023 and 2024. The stabilization of asset levels and equity toward the later periods may reflect a more cautious or optimized approach to asset management and financing.
Interest Coverage
Valero Energy Corp., interest coverage calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income (loss) attributable to Valero Energy Corporation stockholders | 364) | 880) | 1,245) | 1,202) | 2,622) | 1,944) | 3,067) | 3,113) | 2,817) | 4,693) | 905) | 1,009) | 463) | 162) | (704) | (359) | (464) | 1,253) | (1,851) | ||||||
| Add: Net income attributable to noncontrolling interest | 29) | 46) | 85) | 16) | 41) | 178) | 79) | 119) | 95) | 75) | 62) | 101) | 45) | 130) | 82) | 50) | 85) | 82) | 97) | ||||||
| Add: Income tax expense | 96) | 277) | 353) | 331) | 813) | 595) | 880) | 1,018) | 816) | 1,342) | 252) | 169) | 65) | 169) | (148) | (289) | (337) | 339) | (616) | ||||||
| Add: Interest and debt expense, net of capitalized interest | 141) | 140) | 140) | 149) | 149) | 148) | 146) | 137) | 138) | 142) | 145) | 152) | 152) | 150) | 149) | 153) | 143) | 142) | 125) | ||||||
| Earnings before interest and tax (EBIT) | 630) | 1,343) | 1,823) | 1,698) | 3,625) | 2,865) | 4,172) | 4,387) | 3,866) | 6,252) | 1,364) | 1,431) | 725) | 611) | (621) | (445) | (573) | 1,816) | (2,245) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Interest coverage1 | 9.64 | 14.69 | 17.08 | 20.88 | 25.95 | 26.87 | 33.17 | 28.24 | 22.38 | 16.53 | 6.90 | 3.56 | 0.45 | -1.73 | 0.30 | -2.57 | 1.46 | 4.55 | 2.92 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | 49.42 | 59.46 | 60.29 | 64.08 | 77.06 | 87.36 | 102.29 | 97.27 | 86.49 | 68.50 | 44.87 | 31.39 | 19.12 | 8.50 | -11.85 | — | — | — | — | ||||||
| ConocoPhillips | 19.45 | 20.40 | 20.49 | 21.88 | 24.35 | 28.69 | 33.08 | 36.07 | 33.30 | 28.10 | 22.60 | 15.38 | 9.41 | 4.77 | 1.17 | — | — | — | — | ||||||
| Exxon Mobil Corp. | 52.17 | 54.97 | 54.07 | 63.17 | 74.98 | 85.62 | 108.93 | 94.68 | 88.00 | 68.10 | 42.27 | 33.98 | -5.84 | -14.48 | -20.45 | — | — | — | — | ||||||
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).
1 Q3 2024 Calculation
Interest coverage
= (EBITQ3 2024
+ EBITQ2 2024
+ EBITQ1 2024
+ EBITQ4 2023)
÷ (Interest expenseQ3 2024
+ Interest expenseQ2 2024
+ Interest expenseQ1 2024
+ Interest expenseQ4 2023)
= (630 + 1,343 + 1,823 + 1,698)
÷ (141 + 140 + 140 + 149)
= 9.64
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values show significant volatility across the observed periods. Initially, there is a large negative EBIT in March 2020, followed by a strong positive rebound in June 2020. This fluctuation repeats with negative values toward the end of 2020 and the first quarter of 2021, before a consistent positive trend starts in mid-2021. Notably, there is a substantial increase in EBIT during 2022, peaking significantly in the second quarter. However, from late 2022 through 2023, EBIT exhibits a downward trend with intermittent increases, reaching much lower positive values by the latest quarters of 2023 and into 2024. This pattern suggests periods of recovery and growth interspersed with contractions, with overall moderation in EBIT levels in recent quarters.
- Interest and debt expense, net of capitalized interest
- Interest and debt expenses remain relatively stable over the entire timeframe. The figures fluctuate only slightly between approximately 125 million and 153 million US dollars, reflecting consistent debt servicing costs. There is no clear upward or downward trend, indicating steady debt-related expenses without significant changes in capital structure or interest rates affecting these costs.
- Interest coverage ratio
- The interest coverage ratio demonstrates a pronounced improvement over the periods in review. Starting from relatively low and negative values in early 2020 and parts of 2021, the ratio increases markedly from late 2021 through 2022, reaching very high levels that indicate strong ability to meet interest obligations from operating earnings. The ratio peaks during mid to late 2022 and early 2023, reflecting the robust EBIT performance during these quarters. However, the coverage ratio gradually declines in the subsequent quarters of 2023 and into 2024, mirroring the reduction in EBIT while interest expenses remain constant. Despite this decline, the interest coverage remains substantially above the early period lows, suggesting overall improved financial resilience.