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.
Peer comparison
Dec 31, 2024