Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Analysis of Profitability Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
Valero Energy Corp., long-term (investment) activity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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 analysis of the financial data reveals noticeable fluctuations and overall trends in the efficiency ratios over the five-year period.
- Net Fixed Asset Turnover
- This ratio declined significantly from 3.7 in 2019 to 2.14 in 2020, indicating a decrease in asset utilization efficiency during that year. However, it recovered strongly in 2021, reaching 3.69, and improved even further to 5.69 in 2022, before slightly decreasing to 4.79 in 2023. The trend suggests an initial impact likely due to external factors, followed by effective asset utilization improvements.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- This adjusted ratio exhibits a similar pattern to the net fixed asset turnover, starting at 3.54 in 2019 and dropping to 2.05 in 2020. It then steadily increased through 2021 and 2022, reaching a peak of 5.5 before a slight decline to 4.62 in 2023. This parallel trend reflects consistent improvements in asset efficiency when accounting for leased assets over the observed period.
- Total Asset Turnover
- The total asset turnover ratio also experienced a marked decline from 2.01 in 2019 to 1.25 in 2020, indicating lower overall asset efficiency. However, this ratio showed a recovery in subsequent years, climbing to 1.97 in 2021 and peaking at 2.89 in 2022. The figure then decreased to 2.3 in 2023, demonstrating a slight pullback following a period of enhanced asset use.
- Equity Turnover
- The equity turnover ratio shows a strong upward trajectory overall. Although it dropped from 4.97 in 2019 to 3.45 in 2020, it significantly increased to 6.18 in 2021 and further to 7.49 in 2022, before settling at 5.49 in 2023. This pattern suggests improving efficiency in the use of shareholder equity over the medium term, albeit with some variability toward the end of the period.
In summary, after a pronounced decline in 2020 across all measured turnover ratios, likely reflecting broader economic challenges, there was a general recovery and strong improvement from 2021 to 2022. The slight declines observed in 2023 across all ratios may indicate emerging constraints or strategic shifts in asset management and equity utilization.
Net Fixed Asset Turnover
Valero Energy Corp., net fixed asset turnover calculation, comparison to benchmarks
| 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 | ||||||
| Property, plant, and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Energy | ||||||
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
Net fixed asset turnover = Revenues, includes excise taxes on sales by certain of foreign operations ÷ Property, plant, and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues exhibited significant volatility over the five-year period. There was a marked decline from 108,324 million USD in 2019 to 64,912 million USD in 2020, reflecting a decrease of approximately 40%. Following this, revenues rebounded strongly in 2021 to 113,977 million USD, surpassing the 2019 level. The upward trajectory continued into 2022, reaching a peak of 176,383 million USD. However, in 2023, revenues decreased to 144,766 million USD, indicating a contraction but still remaining well above the 2019 and 2021 levels.
- Property, Plant, and Equipment (PPE) Trends
- The net value of property, plant, and equipment remained relatively stable throughout the period, with modest fluctuations. Starting at 29,264 million USD in 2019, the figure slightly increased to 30,389 million USD in 2020 and continued gradual incremental growth until reaching 30,978 million USD in 2022. A minor decline occurred in 2023, with net PPE valued at 30,209 million USD. Overall, the asset base maintained a consistent level without drastic changes.
- Net Fixed Asset Turnover Analysis
- The net fixed asset turnover ratio experienced significant variation across the years. It was 3.7 in 2019, followed by a sharp decline to 2.14 in 2020, mirroring the revenue drop during that year. The ratio then recovered strongly to 3.69 in 2021, nearly returning to the 2019 level. A substantial increase occurred in 2022, with the ratio reaching 5.69, indicating a much higher efficiency in generating revenues from fixed assets. In 2023, the ratio decreased to 4.79 but remained significantly above the values observed in 2019 through 2021.
- Overall Insights
- The period saw an initial adverse impact in 2020, likely indicative of external disruptions affecting revenue generation. Despite this, the company managed to restore and even exceed prior revenue levels, showing resilience and growth, particularly in 2022. The stability in property, plant, and equipment suggests limited new investments or disposals, with operational efficiency improvements reflected in the rising net fixed asset turnover ratio in the later years. The higher turnover ratios in 2022 and 2023 imply improved utilization of fixed assets to generate revenue, although the slight downturn in 2023 revenues and turnover hints at some challenges or market variances that warrant monitoring.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Valero Energy Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| 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 | ||||||
| Property, plant, and equipment, net | ||||||
| Operating lease ROU assets, net | ||||||
| Property, plant, and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Energy | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues, includes excise taxes on sales by certain of foreign operations ÷ Property, plant, and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenues, includes excise taxes on sales by certain of foreign operations
- Revenues exhibited notable volatility over the five-year period. Starting at 108,324 million USD in 2019, there was a substantial decline to 64,912 million USD in 2020, likely reflecting external challenges impacting sales. This was followed by a significant recovery in 2021, with revenues increasing to 113,977 million USD. The upward trend continued sharply in 2022, reaching a peak of 176,383 million USD, before decreasing to 144,766 million USD in 2023. The data suggests cyclical peaks and troughs with a generally positive long-term recovery trajectory after the 2020 dip.
- Property, plant, and equipment, net (including operating lease, right-of-use asset)
- The net value of property, plant, and equipment remained relatively stable throughout the period. Starting at 30,593 million USD in 2019, there was a slight increase to 31,593 million USD in 2020 and a continued modest rise to 32,131 million USD in 2021. However, these values plateaued and slightly declined to 32,092 million USD in 2022 and further to 31,345 million USD in 2023. This stability suggests consistent capital investment without significant expansions or reductions in fixed asset base.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio experienced significant fluctuations over the analyzed period. Initially, it was at 3.54 in 2019, declining sharply to 2.05 in 2020, which corresponds with the revenue decline and the relatively stable asset base. In 2021, turnover rebounded strongly to 3.55, matching the pre-2020 level. The upward trend continued impressively in 2022, reaching 5.5, indicating highly efficient use of fixed assets in generating revenues. There was a slight decrease in 2023 to 4.62, yet the ratio remained elevated compared to earlier years, reflecting sustained asset productivity improvements despite the revenue decline.
Total Asset Turnover
Valero Energy Corp., total asset turnover calculation, comparison to benchmarks
| 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 | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Total Asset Turnover, Industry | ||||||
| Energy | ||||||
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
Total asset turnover = Revenues, includes excise taxes on sales by certain of foreign operations ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues experienced substantial fluctuations over the analyzed period. There was a sharp decline from 108,324 million USD in 2019 to 64,912 million USD in 2020, representing a significant drop likely due to external market conditions or disruptions. This was followed by a strong recovery in 2021, where revenues rose to 113,977 million USD, surpassing the 2019 level. The upward momentum continued into 2022 with revenues peaking at 176,383 million USD, before declining to 144,766 million USD in 2023. Overall, the revenue pattern shows sensitivity to economic cycles but a general recovery trend post-2020.
- Total Assets
- Total assets demonstrated a steady but modest growth throughout the period. Starting at 53,864 million USD in 2019, assets slightly declined to 51,774 million USD in 2020, possibly reflecting adjustments during the revenue downturn, and then progressively increased each subsequent year to reach 63,056 million USD in 2023. The asset base expansion suggests ongoing investment or acquisition activities and overall enhancement of the company’s capacity to support operations.
- Total Asset Turnover
- Total asset turnover ratio exhibited notable variability aligned inversely with asset and revenue changes. It declined significantly from 2.01 in 2019 to 1.25 in 2020, indicating reduced efficiency in using assets to generate sales during that year. A robust recovery followed, reaching 1.97 in 2021 and surging to 2.89 in 2022, the highest ratio observed, indicative of a highly efficient utilization of assets relative to revenues. In 2023, the turnover moderated to 2.3, maintaining a relatively strong efficiency level despite the decline in revenue. This fluctuation underscores the interplay between asset usage and revenue generation capability over the years.
Equity Turnover
Valero Energy Corp., equity turnover calculation, comparison to benchmarks
| 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 | ||||||
| Total Valero Energy Corporation stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Equity Turnover, Industry | ||||||
| Energy | ||||||
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
Equity turnover = Revenues, includes excise taxes on sales by certain of foreign operations ÷ Total Valero Energy Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues displayed significant fluctuations over the five-year period. Starting at 108,324 million USD in 2019, there was a notable decline to 64,912 million USD in 2020. This decrease may reflect broader market or industry disruptions during that period. However, revenues sharply rebounded in 2021 to 113,977 million USD, surpassing the 2019 level. This upward momentum continued strongly into 2022, reaching a peak of 176,383 million USD. In 2023, revenues declined to 144,766 million USD but remained substantially higher than the levels observed before 2022.
- Stockholders’ Equity
- Stockholders’ equity showed variability but overall growth throughout the period. Equity started at 21,803 million USD in 2019 and decreased steadily in the two following years, reaching a low of 18,430 million USD at the end of 2021. From 2022 onwards, equity increased consistently, moving up to 23,561 million USD and further to 26,346 million USD by the end of 2023. This upward trend in equity suggests an improvement in the company’s retained earnings or additional capital infusion during the latter years.
- Equity Turnover Ratio
- The equity turnover ratio, which measures how effectively the company generates sales from its equity base, fluctuated between 2019 and 2023. It was relatively high at 4.97 in 2019 but declined sharply to 3.45 in 2020, aligning with the revenue drop in that year. However, there was a substantial recovery in 2021 with the ratio increasing to 6.18, followed by a further rise to 7.49 in 2022, indicating improved efficiency in utilizing equity to generate revenues. In 2023, the ratio declined to 5.49, suggesting a moderation but still maintaining a stronger performance than the earlier years.
- Overall Insights
- The data depicts a period of volatility with a significant dip in 2020 coinciding with declines in revenue and equity turnover. Recovery phases in 2021 and 2022 were marked by strong revenue growth and improved operational efficiency as reflected by the increase in equity turnover. Although 2023 saw some reduction in revenue and equity turnover compared to 2022, both metrics stayed at robust levels that surpassed earlier years, alongside a steadily increasing equity base. This combination signals enhanced financial health and operational effectiveness following the earlier downturn.