Valero Energy Corporation (VLO)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,698,000 | 11,768,000 | 15,307,000 | 1,543,000 | -2,010,000 |
| Revenue | US$ in thousands | 129,881,000 | 144,766,000 | 176,383,000 | 113,977,000 | 64,912,000 |
| Pretax margin | 2.85% | 8.13% | 8.68% | 1.35% | -3.10% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $3,698,000K ÷ $129,881,000K
= 2.85%
Valero Energy Corporation's pretax margin has shown fluctuations over the years, based on the provided data. In 2020, the pretax margin was negative at -3.10%, indicating that the company's expenses exceeded its revenues before taxes. However, the margin improved in 2021 to 1.35%, demonstrating better cost management or increased revenue generation.
The most significant improvement in pretax margin occurred in 2022, reaching 8.68%, suggesting that Valero effectively controlled costs and increased profitability. This positive trend continued in 2023 with a pretax margin of 8.13%.
In 2024, the pretax margin decreased to 2.85%, possibly due to changes in the company's cost structure or a slowdown in revenue growth. It is important for Valero Energy Corporation to assess the factors influencing these fluctuations to maintain or enhance its profitability in the future.