Valero Energy Corporation (VLO)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 8,835,000 | 11,528,000 | 930,000 | -1,421,000 | 2,422,000 |
| Revenue | US$ in thousands | 144,216,000 | 175,864,000 | 113,250,000 | 64,912,000 | 108,324,000 |
| Net profit margin | 6.13% | 6.56% | 0.82% | -2.19% | 2.24% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $8,835,000K ÷ $144,216,000K
= 6.13%
The net profit margin of Valero Energy Corp. has shown variability over the past five years. In 2023, the net profit margin stood at 6.08%, showing a slight decline from the previous year's 6.51%. This indicates that for every dollar of revenue generated, Valero retained $0.0608 in profit after accounting for all expenses.
The substantial improvement in net profit margin from 2020 to 2022 is noteworthy, as it increased from a negative value of -2.20% to 6.51%. This indicates that the company was able to effectively control costs and increase profitability during this period.
However, the significant drop in net profit margin in 2021 to 0.81% raises some concerns about the company's profitability efficiency. It is essential for Valero Energy Corp. to analyze the factors contributing to this decline and implement strategies to improve profitability in the future.
Overall, while the recent net profit margins have shown some fluctuations, Valero Energy Corp. has managed to maintain positive profitability in recent years, with room for improvement to ensure sustained financial performance.
Peer comparison
Dec 31, 2023