Valero Energy Corporation (VLO)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 11,454,000 | 14,956,000 | 1,185,000 | -2,324,000 | 3,124,000 |
| Revenue | US$ in thousands | 144,216,000 | 175,864,000 | 113,250,000 | 64,912,000 | 108,324,000 |
| Pretax margin | 7.94% | 8.50% | 1.05% | -3.58% | 2.88% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $11,454,000K ÷ $144,216,000K
= 7.94%
The pretax margin is a key profitability ratio that indicates the percentage of each dollar of revenue that represents pre-tax profit.
Valero Energy Corp.'s pretax margin has shown fluctuation over the past five years. In 2023, the pretax margin stood at 8.13%, a slight decrease from the previous year's 8.68%. This suggests that the company's ability to generate profits before taxes from its operations slightly decreased compared to the prior year.
When comparing to 2021, the pretax margin experienced a significant improvement in 2022, increasing to 8.68% from a mere 1.35%. This leap indicates a substantial enhancement in the company's operational efficiency and cost management as it significantly increased profitability.
In 2020, Valero Energy Corp. reported a negative pretax margin of -3.10%, which signifies that the company incurred losses before taxes that year. However, the company managed to recover and achieve a positive 3.22% pretax margin in 2019, showcasing a turnaround in profitability compared to the previous year.
Overall, Valero Energy Corp.'s pretax margin performance indicates a mix of fluctuations and improvements in profitability over the past five years, signifying the company's ability to navigate changing market conditions and optimize its operational efficiency.
Peer comparison
Dec 31, 2023