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.