Valero Energy Corporation (VLO)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 11,858,000 | 15,690,000 | 2,130,000 | -1,579,000 | 3,836,000 |
| Revenue | US$ in thousands | 144,216,000 | 175,864,000 | 113,250,000 | 64,912,000 | 108,324,000 |
| Operating profit margin | 8.22% | 8.92% | 1.88% | -2.43% | 3.54% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $11,858,000K ÷ $144,216,000K
= 8.22%
The operating profit margin of Valero Energy Corp. has fluctuated over the past five years. In 2023, the operating profit margin stood at 8.19%, showing a slight decrease from the previous year's margin of 8.93%. This indicates that the company generated 8.19 cents of operating profit for each dollar of revenue in 2023.
Looking back, the company experienced a significant improvement in operating profit margin in 2022 compared to 2021, where the margin increased from 1.87% to 8.93%. This likely reflects improved cost management and operational efficiency during that period.
However, in 2020, Valero Energy Corp. recorded a negative operating profit margin of -2.43%, indicating that the company's operating expenses exceeded its operating income. This could have been due to challenging market conditions or operational inefficiencies during that year.
The positive trend continued over the years, as the company managed to turn around its operating profit margin to 3.54% in 2019 after the negative performance in 2020. Overall, the fluctuation in operating profit margin suggests that Valero Energy Corp. has experienced varying levels of profitability and operational efficiency in recent years, which may be influenced by factors such as market conditions, cost management, and strategic initiatives.
Peer comparison
Dec 31, 2023