Valero Energy Corporation (VLO)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 3,698,000 | 4,924,000 | 7,911,000 | 9,425,000 | 11,768,000 | 14,469,000 | 14,721,000 | 18,114,000 | 15,307,000 | 12,336,000 | 9,181,000 | 3,532,000 | 1,543,000 | -334,000 | -1,623,000 | -410,000 | -2,010,000 | 244,000 | 1,764,000 | 898,000 |
| Revenue (ttm) | US$ in thousands | 129,810,000 | 134,468,000 | 140,020,000 | 140,066,000 | 144,766,000 | 151,098,000 | 157,148,000 | 174,280,000 | 176,383,000 | 170,540,000 | 155,606,000 | 131,713,000 | 113,977,000 | 94,678,000 | 80,967,000 | 63,616,000 | 64,912,000 | 76,187,000 | 87,627,000 | 106,163,000 |
| Pretax margin | 2.85% | 3.66% | 5.65% | 6.73% | 8.13% | 9.58% | 9.37% | 10.39% | 8.68% | 7.23% | 5.90% | 2.68% | 1.35% | -0.35% | -2.00% | -0.64% | -3.10% | 0.32% | 2.01% | 0.85% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $3,698,000K ÷ $129,810,000K
= 2.85%
The pretax margin of Valero Energy Corporation has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The pretax margin, which indicates the company's profitability before taxes, started at a modest 0.85% in March 2020, gradually increased to a peak of 10.39% in March 2023, and then fluctuated around the 9% range before decreasing to 2.85% by December 31, 2024.
The company experienced significant volatility in its pretax margin, with both positive and negative values observed during the period. This volatility could be attributed to various factors such as changes in industry dynamics, fluctuations in input costs, economic conditions, and strategic decisions made by the company.
Overall, the upward trend in pretax margin from 2020 to 2023 followed by a decline in 2024 suggests that Valero Energy Corporation managed to improve its profitability initially but faced challenges in maintaining this performance towards the end of the period. It would be important for the company to focus on sustaining profitability and implementing strategies to mitigate the factors leading to the decline in pretax margin.
Peer comparison
Dec 31, 2024