Valero Energy Corporation (VLO)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 12,046,000 | 15,518,000 | 1,788,000 | -1,761,000 | 3,578,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 26,346,000 | 23,561,000 | 18,430,000 | 18,801,000 | 21,803,000 |
| Return on total capital | 45.72% | 65.86% | 9.70% | -9.37% | 16.41% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $12,046,000K ÷ ($—K + $26,346,000K)
= 45.72%
Valero Energy Corp.'s return on total capital has exhibited significant fluctuations over the past five years. In 2023, the return on total capital was 31.31%, a decrease from the previous year's figure of 44.75%. However, it still demonstrates a strong performance compared to 2021 when the return on total capital was 6.59%.
The company faced challenges in 2020 with a negative return on total capital of -4.72%, indicating a period of financial difficulty. The return on total capital improved in 2019 to 12.19%, showing a recovery from the negative performance in the previous year.
Overall, Valero Energy Corp.'s return on total capital has been volatile, reflecting fluctuations in profitability and efficiency in utilizing its total capital resources. The company may benefit from analyzing the factors contributing to these fluctuations to identify areas for improvement and enhance long-term financial performance.
Peer comparison
Dec 31, 2023