Valero Energy Corporation (VLO)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	26,346,000	23,561,000	18,430,000	18,801,000	21,803,000
ROE		33.53%	48.93%	5.05%	-7.56%	11.11%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $8,835,000K ÷ $26,346,000K
= 33.53%

Valero Energy Corp.'s return on equity (ROE) has exhibited significant fluctuations over the years, indicating varying levels of profitability and efficiency in generating returns for shareholders. In 2023, the ROE stood at 33.43%, reflecting a decrease from the previous year's high of 48.75%. This decline suggests a potential dip in profitability or a decrease in efficiency in utilizing shareholders' equity to generate profits.

Looking at the trend over the last five years, Valero Energy Corp. experienced a notable improvement in ROE from negative territory in 2020 to positive levels in the subsequent years, showcasing a recovery in profitability and efficiency. However, the ROE in 2021 and 2023, although positive, was relatively lower compared to the peak in 2022.

The fluctuations in ROE could be attributed to various factors such as changes in revenue, expenses, debt levels, and asset management efficiency within the company. It is essential for Valero Energy Corp. to closely monitor and address the factors influencing ROE to sustain and enhance shareholder value over the long term.