Valero Energy Corporation (VLO)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 4,760,000 | 12,899,000 | 16,751,000 | 3,082,000 | -788,000 |
| Revenue | US$ in thousands | 129,881,000 | 144,766,000 | 176,383,000 | 113,977,000 | 64,912,000 |
| Gross profit margin | 3.66% | 8.91% | 9.50% | 2.70% | -1.21% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $4,760,000K ÷ $129,881,000K
= 3.66%
The gross profit margin of Valero Energy Corporation has exhibited fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The margin stood at -1.21% in 2020, indicating that the company experienced a negative gross profit relative to its revenues. However, there was a significant improvement in subsequent years, with the margin increasing to 2.70% in 2021, 9.50% in 2022, and 8.91% in 2023. This suggests that Valero was able to enhance its efficiency in generating profit from its core operations.
In 2024, the gross profit margin declined to 3.66%, signaling a slight decrease in profitability compared to the previous year. Despite this, the company maintained a positive margin, indicating that it continued to generate profit after accounting for the cost of goods sold.
Overall, the fluctuating trend in Valero's gross profit margin highlights the volatility in its ability to convert sales into profits over the years. It would be important for stakeholders to monitor this metric closely to assess the company's operational performance and efficiency in managing costs.
Peer comparison
Dec 31, 2024