Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Valero Energy Corp., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Valero Energy Corp. inventory turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Valero Energy Corp. receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Valero Energy Corp. payables turnover ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Valero Energy Corp. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Valero Energy Corp. number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Valero Energy Corp. operating cycle improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Valero Energy Corp. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Inventory Turnover
Valero Energy Corp., inventory 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) | ||||||
| Cost of sales | 131,834) | 159,587) | 110,848) | 65,652) | 103,546) | |
| Inventories | 7,583) | 6,752) | 6,265) | 6,038) | 7,013) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 17.39 | 23.64 | 17.69 | 10.87 | 14.76 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Chevron Corp. | 22.86 | 28.58 | 24.68 | 16.64 | 23.92 | |
| ConocoPhillips | 40.16 | 64.39 | 37.94 | 18.75 | 31.74 | |
| Exxon Mobil Corp. | 13.32 | 16.32 | 14.73 | 9.47 | 13.79 | |
| Marathon Petroleum Corp. | 13.80 | 17.18 | 13.66 | 8.22 | 10.76 | |
| Occidental Petroleum Corp. | 13.97 | 17.79 | 14.06 | 9.38 | 14.09 | |
| Pioneer Natural Resources Co. | 40.70 | 57.51 | 48.43 | 31.36 | 47.18 | |
| Inventory Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 16.43 | 20.88 | 17.34 | 10.75 | 15.16 | |
| Inventory Turnover, Industry | ||||||
| Energy | 15.66 | 19.80 | 16.53 | 10.41 | 14.46 | |
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
Inventory turnover = Cost of sales ÷ Inventories
= 131,834 ÷ 7,583 = 17.39
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Valero Energy Corp. inventory turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Receivables Turnover
Valero Energy Corp., receivables 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 | 144,766) | 176,383) | 113,977) | 64,912) | 108,324) | |
| Receivables after allowance for credit losses | 11,038) | 10,761) | 9,968) | 4,807) | 8,058) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 13.12 | 16.39 | 11.43 | 13.50 | 13.44 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Chevron Corp. | 9.88 | 11.52 | 8.45 | 8.24 | 10.50 | |
| ConocoPhillips | 10.28 | 11.09 | 7.00 | 7.13 | 9.97 | |
| Exxon Mobil Corp. | 11.05 | 12.14 | 10.29 | 10.93 | 12.11 | |
| Marathon Petroleum Corp. | 12.77 | 13.17 | 10.87 | 12.11 | 15.75 | |
| Occidental Petroleum Corp. | 8.84 | 8.56 | 6.17 | 8.42 | 3.20 | |
| Pioneer Natural Resources Co. | 12.18 | 13.16 | 10.61 | 10.11 | 9.34 | |
| Receivables Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 11.17 | 12.43 | 9.60 | 10.30 | 11.31 | |
| Receivables Turnover, Industry | ||||||
| Energy | 10.58 | 11.82 | 9.27 | 9.68 | 10.52 | |
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
Receivables turnover = Revenues, includes excise taxes on sales by certain of foreign operations ÷ Receivables after allowance for credit losses
= 144,766 ÷ 11,038 = 13.12
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Valero Energy Corp. receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Payables Turnover
Valero Energy Corp., payables 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) | ||||||
| Cost of sales | 131,834) | 159,587) | 110,848) | 65,652) | 103,546) | |
| Accounts payable | 12,567) | 12,728) | 12,495) | 6,082) | 10,205) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 10.49 | 12.54 | 8.87 | 10.79 | 10.15 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Chevron Corp. | 9.64 | 12.44 | 9.46 | 8.63 | 9.92 | |
| ConocoPhillips | 11.04 | 12.84 | 9.16 | 7.04 | 10.25 | |
| Exxon Mobil Corp. | 10.71 | 12.02 | 10.39 | 10.20 | 10.35 | |
| Marathon Petroleum Corp. | 9.34 | 9.91 | 8.03 | 8.42 | 9.48 | |
| Occidental Petroleum Corp. | 7.75 | 9.09 | 6.66 | 5.96 | 2.91 | |
| Pioneer Natural Resources Co. | 8.03 | 9.80 | 7.51 | 7.57 | 7.92 | |
| Payables Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 10.05 | 11.69 | 9.22 | 9.16 | 9.33 | |
| Payables Turnover, Industry | ||||||
| Energy | 9.84 | 11.46 | 9.10 | 9.05 | 9.12 | |
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
Payables turnover = Cost of sales ÷ Accounts payable
= 131,834 ÷ 12,567 = 10.49
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Valero Energy Corp. payables turnover ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
Working Capital Turnover
Valero Energy Corp., working capital 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) | ||||||
| Current assets | 26,221) | 24,133) | 21,165) | 15,844) | 18,969) | |
| Less: Current liabilities | 16,802) | 17,461) | 16,851) | 9,283) | 13,160) | |
| Working capital | 9,419) | 6,672) | 4,314) | 6,561) | 5,809) | |
| Revenues, includes excise taxes on sales by certain of foreign operations | 144,766) | 176,383) | 113,977) | 64,912) | 108,324) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 15.37 | 26.44 | 26.42 | 9.89 | 18.65 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Chevron Corp. | 22.20 | 14.61 | 22.40 | 24.25 | 77.75 | |
| ConocoPhillips | 12.98 | 13.30 | 11.37 | 2.80 | 3.30 | |
| Exxon Mobil Corp. | 10.70 | 13.95 | 110.19 | — | — | |
| Marathon Petroleum Corp. | 12.38 | 11.66 | 9.52 | 5.53 | 30.81 | |
| Occidental Petroleum Corp. | — | 32.45 | 13.76 | 29.88 | 5.46 | |
| Pioneer Natural Resources Co. | — | — | 8.51 | 10.19 | — | |
| Working Capital Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 14.34 | 15.35 | 21.98 | 23.03 | 62.81 | |
| Working Capital Turnover, Industry | ||||||
| Energy | 13.92 | 15.11 | 21.23 | 21.57 | 53.88 | |
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
Working capital turnover = Revenues, includes excise taxes on sales by certain of foreign operations ÷ Working capital
= 144,766 ÷ 9,419 = 15.37
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Valero Energy Corp. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Average Inventory Processing Period
Valero Energy Corp., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 17.39 | 23.64 | 17.69 | 10.87 | 14.76 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 21 | 15 | 21 | 34 | 25 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Chevron Corp. | 16 | 13 | 15 | 22 | 15 | |
| ConocoPhillips | 9 | 6 | 10 | 19 | 11 | |
| Exxon Mobil Corp. | 27 | 22 | 25 | 39 | 26 | |
| Marathon Petroleum Corp. | 26 | 21 | 27 | 44 | 34 | |
| Occidental Petroleum Corp. | 26 | 21 | 26 | 39 | 26 | |
| Pioneer Natural Resources Co. | 9 | 6 | 8 | 12 | 8 | |
| Average Inventory Processing Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 22 | 17 | 21 | 34 | 24 | |
| Average Inventory Processing Period, Industry | ||||||
| Energy | 23 | 18 | 22 | 35 | 25 | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 17.39 = 21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
Valero Energy Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 13.12 | 16.39 | 11.43 | 13.50 | 13.44 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 28 | 22 | 32 | 27 | 27 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Chevron Corp. | 37 | 32 | 43 | 44 | 35 | |
| ConocoPhillips | 36 | 33 | 52 | 51 | 37 | |
| Exxon Mobil Corp. | 33 | 30 | 35 | 33 | 30 | |
| Marathon Petroleum Corp. | 29 | 28 | 34 | 30 | 23 | |
| Occidental Petroleum Corp. | 41 | 43 | 59 | 43 | 114 | |
| Pioneer Natural Resources Co. | 30 | 28 | 34 | 36 | 39 | |
| Average Receivable Collection Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 33 | 29 | 38 | 35 | 32 | |
| Average Receivable Collection Period, Industry | ||||||
| Energy | 35 | 31 | 39 | 38 | 35 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 13.12 = 28
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Valero Energy Corp. number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Operating Cycle
Valero Energy Corp., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 21 | 15 | 21 | 34 | 25 | |
| Average receivable collection period | 28 | 22 | 32 | 27 | 27 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 49 | 37 | 53 | 61 | 52 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Chevron Corp. | 53 | 45 | 58 | 66 | 50 | |
| ConocoPhillips | 45 | 39 | 62 | 70 | 48 | |
| Exxon Mobil Corp. | 60 | 52 | 60 | 72 | 56 | |
| Marathon Petroleum Corp. | 55 | 49 | 61 | 74 | 57 | |
| Occidental Petroleum Corp. | 67 | 64 | 85 | 82 | 140 | |
| Pioneer Natural Resources Co. | 39 | 34 | 42 | 48 | 47 | |
| Operating Cycle, Sector | ||||||
| Oil, Gas & Consumable Fuels | 55 | 46 | 59 | 69 | 56 | |
| Operating Cycle, Industry | ||||||
| Energy | 58 | 49 | 61 | 73 | 60 | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 21 + 28 = 49
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Valero Energy Corp. operating cycle improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Average Payables Payment Period
Valero Energy Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 10.49 | 12.54 | 8.87 | 10.79 | 10.15 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 35 | 29 | 41 | 34 | 36 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Chevron Corp. | 38 | 29 | 39 | 42 | 37 | |
| ConocoPhillips | 33 | 28 | 40 | 52 | 36 | |
| Exxon Mobil Corp. | 34 | 30 | 35 | 36 | 35 | |
| Marathon Petroleum Corp. | 39 | 37 | 45 | 43 | 38 | |
| Occidental Petroleum Corp. | 47 | 40 | 55 | 61 | 126 | |
| Pioneer Natural Resources Co. | 45 | 37 | 49 | 48 | 46 | |
| Average Payables Payment Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 36 | 31 | 40 | 40 | 39 | |
| Average Payables Payment Period, Industry | ||||||
| Energy | 37 | 32 | 40 | 40 | 40 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.49 = 35
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
Valero Energy Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 21 | 15 | 21 | 34 | 25 | |
| Average receivable collection period | 28 | 22 | 32 | 27 | 27 | |
| Average payables payment period | 35 | 29 | 41 | 34 | 36 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 14 | 8 | 12 | 27 | 16 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Chevron Corp. | 15 | 16 | 19 | 24 | 13 | |
| ConocoPhillips | 12 | 11 | 22 | 18 | 12 | |
| Exxon Mobil Corp. | 26 | 22 | 25 | 36 | 21 | |
| Marathon Petroleum Corp. | 16 | 12 | 16 | 31 | 19 | |
| Occidental Petroleum Corp. | 20 | 24 | 30 | 21 | 14 | |
| Pioneer Natural Resources Co. | -6 | -3 | -7 | 0 | 1 | |
| Cash Conversion Cycle, Sector | ||||||
| Oil, Gas & Consumable Fuels | 19 | 15 | 19 | 29 | 17 | |
| Cash Conversion Cycle, Industry | ||||||
| Energy | 21 | 17 | 21 | 33 | 20 | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 21 + 28 – 35 = 14
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Valero Energy Corp. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |