Valero Energy Corporation (VLO)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	2,770,000	3,691,000	5,949,000	7,013,000	8,835,000	10,746,000	10,941,000	13,690,000	11,528,000	9,424,000	7,070,000	2,539,000	930,000	-438,000	-1,365,000	-274,000	-1,421,000	-2,000	1,071,000	430,000
Total stockholders’ equity	US$ in thousands	24,512,000	25,253,000	25,443,000	26,057,000	26,346,000	25,975,000	25,851,000	24,977,000	23,561,000	23,715,000	20,969,000	18,821,000	18,430,000	17,476,000	17,651,000	17,801,000	18,801,000	19,223,000	19,847,000	18,842,000
ROE		11.30%	14.62%	23.38%	26.91%	33.53%	41.37%	42.32%	54.81%	48.93%	39.74%	33.72%	13.49%	5.05%	-2.51%	-7.73%	-1.54%	-7.56%	-0.01%	5.40%	2.28%

December 31, 2024 calculation

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

The Return on Equity (ROE) of Valero Energy Corporation has shown significant fluctuations over the examined period from Q1 2020 to Q4 2024. The ROE started with a low of 2.28% in March 2020, steadily increased to a peak of 54.81% in March 2023, before gradually declining to 11.30% in December 2024.

The company's ROE performance reveals periods of both profitability and challenges. The negative ROE figures in some quarters, particularly in the latter part of 2020 and 2021, suggest that the company may have faced difficulties in generating sustainable returns on shareholder equity during those periods.

However, the substantial improvement in ROE from mid-2022 to early 2023 indicates a positive trend in the company's profitability and efficiency in utilizing shareholder investments to generate earnings. The subsequent decrease in ROE from 2023 onwards might signal a slowdown in profitability growth or a change in the company's financial dynamics.

Overall, the fluctuating ROE trend of Valero Energy Corporation demonstrates variability in its profitability and efficiency in utilizing equity to generate earnings over the analyzed period. Further analysis and consideration of the company's operations, financial strategies, and market conditions would be necessary to provide a more comprehensive evaluation of its performance.