Valero Energy Corporation (VLO)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 8,835,000 | 11,528,000 | 930,000 | -1,421,000 | 2,422,000 |
| Total assets | US$ in thousands | 63,056,000 | 60,982,000 | 57,888,000 | 51,774,000 | 53,864,000 |
| ROA | 14.01% | 18.90% | 1.61% | -2.74% | 4.50% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $8,835,000K ÷ $63,056,000K
= 14.01%
The return on assets (ROA) of Valero Energy Corp. has varied significantly over the past five years. The ROA in 2023 stands at 13.97%, a decrease from the previous year's 18.83%. Despite this decrease, the ROA in 2023 remains positive, indicating that the company is generating a return on its assets.
Looking back at previous years, there was a notable improvement in ROA from 1.60% in 2021 to -2.75% in 2020, signifying a turnaround in the company's asset utilization efficiency. The ROA then increased to 4.48% in 2019, demonstrating continued progress in leveraging its assets effectively.
Overall, Valero Energy Corp. has displayed fluctuations in its ROA in recent years, with a positive trend observed between 2020 and 2023. This suggests that the company has been working towards improving its asset utilization and efficiency, which bodes well for its financial performance and strategic management of resources. It will be essential for the company to sustain or enhance this positive trend in ROA to drive sustainable value creation for its stakeholders in the future.
Peer comparison
Dec 31, 2023