Valero Energy Corporation (VLO)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,755,000 | 11,858,000 | 15,690,000 | 2,130,000 | -1,579,000 |
| Revenue | US$ in thousands | 129,881,000 | 144,766,000 | 176,383,000 | 113,977,000 | 64,912,000 |
| Operating profit margin | 2.89% | 8.19% | 8.90% | 1.87% | -2.43% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $3,755,000K ÷ $129,881,000K
= 2.89%
The operating profit margin of Valero Energy Corporation has shown fluctuating trends over the past five years. As of December 31, 2020, the company reported a negative operating profit margin of -2.43%, indicating that its operating expenses exceeded its operating income. However, by December 31, 2021, Valero managed to improve its operating performance, achieving an operating profit margin of 1.87%.
The trend continued to be positive in the subsequent years, with the operating profit margin reaching 8.90% by December 31, 2022, and slightly decreasing to 8.19% by December 31, 2023. It is evident that Valero made significant improvements in its operating efficiency and cost management during these periods.
However, by the end of December 31, 2024, the operating profit margin declined to 2.89%, indicating a decrease in the profitability of the company's core business operations. This decline could be attributed to various factors such as changes in market conditions, fluctuating commodity prices, or operational challenges.
Overall, Valero Energy Corporation's operating profit margin has experienced both positive and negative fluctuations in recent years, highlighting the importance of effective cost control and operational efficiency in maintaining profitability over time.
Peer comparison
Dec 31, 2024