Valero Energy Corporation (VLO)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	2,770,000	8,835,000	11,528,000	1,288,000	-1,107,000
Total stockholders’ equity	US$ in thousands	24,512,000	26,346,000	23,561,000	18,430,000	18,801,000
ROE		11.30%	33.53%	48.93%	6.99%	-5.89%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,770,000K ÷ $24,512,000K
= 11.30%

Valero Energy Corporation's return on equity (ROE) has displayed significant fluctuations over the past five years. In December 2020, the ROE was negative at -5.89%, indicating that the company's net income was insufficient to generate a positive return for shareholders. However, by December 2021, the ROE improved to 6.99%, signaling a recovery in profitability and efficiency in utilizing equity.

The following year, in December 2022, Valero Energy Corporation experienced a substantial surge in ROE to 48.93%, reflecting a remarkable enhancement in shareholder value creation and overall financial performance. This surge could be attributed to various factors such as improved operational efficiency, cost management, or successful strategic initiatives.

In December 2023, the ROE remained relatively high at 33.53%, indicating that the company continued to generate a healthy return for its shareholders. However, there was a decline in ROE in December 2024 to 11.30%, although it remained positive, suggesting a potential slowdown in profitability or a decrease in efficiency in utilizing equity during that period.

Overall, the trend in Valero Energy Corporation's ROE shows both positive and volatile movements, with a mix of strong performance and potential challenges in different years. Investors and stakeholders may need to further analyze the company's financial and operational aspects to gain a deeper understanding of the factors driving these fluctuations in ROE.